Washington D.C. – President Donald Trump announced Friday he will enact a new 10 percent global tariff in response to the Supreme Court’s decision to strike down many of his original tariffs, a move that has injected fresh turmoil into the global trade landscape. The announcement came during a hastily arranged press conference where the President also sharply criticized the justices who ruled against him, calling them “disloyal” and “unpatriotic.”

The Supreme Court, in a 6-3 ruling, determined that Trump had exceeded his authority when imposing sweeping tariffs using the International Emergency Economic Powers Act (IEEPA) of 1977, a law reserved for national emergencies. The decision does not affect all existing tariffs, but invalidates those implemented under IEEPA, potentially opening the door to billions of dollars in refunds to businesses.

Undeterred, Trump declared he had signed an order to impose the new 10 percent tariff under Section 122 of the Trade Act of 1974. This law allows the President to enact tariffs of up to 15 percent for a period of 150 days without prior congressional approval, based on issues related to significant and serious balance of payments problems. The White House has set the rate at 10 percent, a move economists suggest could lead to broad-based increases in import costs.

“This is a terrible decision,” Trump said, referring to the Supreme Court ruling. “But we have alternatives – great alternatives, and we’ll be a lot stronger for it.” He further claimed, without providing evidence, that the Court had been “swayed by foreign interests.”

The legal shift represents a significant pivot for the administration. While the IEEPA route to tariffs has been closed off, Section 122 offers a temporary workaround. However, after the 150-day period expires, Congress would need to approve any extension, placing the fate of the tariffs squarely in the hands of lawmakers. This shift to a legislative battleground is a key element of the unfolding situation.

The original tariffs, implemented under IEEPA, had targeted a wide range of goods from numerous countries, initially focusing on Mexico, Canada, and China before expanding to encompass dozens of trade partners. The administration had justified these tariffs as necessary to protect American industries and national security. The Supreme Court majority, however, found that the President had asserted “extraordinary power to unilaterally impose tariffs of unlimited amount, duration and scope,” without sufficient statutory authority.

Chief Justice John Roberts, writing for the majority, stated that the IEEPA did not grant the President the power to impose tariffs. Justice Brett Kavanaugh, in a dissenting opinion, acknowledged that the ruling likely wouldn’t restrict future presidential tariff authority but warned it would create a “mess” for the government, including the need to issue substantial refunds.

The immediate impact of the new 10 percent tariff is still being assessed. Economists anticipate potential increases in import costs, with the extent of the impact depending on the specific products affected. Markets are currently evaluating how these costs will be passed on to consumers and the potential disruptions to supply chains.

The administration’s move also signals a potential fracturing of the relationship between the White House and the conservative majority on the Supreme Court, which Trump himself helped shape through his appointments. The President’s sharp criticism of the justices raises questions about the future of executive orders on issues ranging from immigration to federal personnel, suggesting they may face similar judicial scrutiny.

The US Trade Representative, Jamieson Greer, indicated that tariffs imposed under Section 301 of the Trade Act of 1974 – which allows for tariffs in response to unfair trade practices – have proven resilient when challenged in court. Trump previously utilized Section 301 during his first term to impose tariffs on approximately $370 billion worth of imports from China, a measure that remained in place throughout President Biden’s administration.

The Supreme Court’s decision and Trump’s subsequent response have injected new uncertainty into the global trade landscape. While the ruling represents a victory for businesses and US states that challenged the original tariffs, the imposition of a new 10 percent global tariff underscores the administration’s commitment to protecting American industries, even in the face of legal setbacks. The coming months will be crucial as Congress weighs whether to extend the new tariffs beyond the initial 150-day period, and as the legal battles over refunds from the invalidated IEEPA tariffs continue to unfold.