US President Donald Trump rolled out a new 10% tariff on imported goods after the Supreme Court blocked the majority of the trade duties he introduced last year, calling the court's decision “terrible” and labeling the justices who opposed him as “fools.”
The high court ruled 6-3 that the president had exceeded his authority under the International Emergency Economic Powers Act (IEEPA), a law from 1977 that allows the executive to regulate trade in times of emergency.
The ruling was hailed by businesses and states that challenged the tariffs, creating a pathway for potential refunds worth billions of dollars while adding uncertainty to global trade.
At a White House briefing on Friday, Trump warned that any refunds would likely face long legal battles but said he would use other laws to continue his tariff strategy. “We have alternatives - great alternatives and we'll be a lot stronger for it,” he said.
The dispute focused on duties first applied last year on imports from nearly all trading partners, starting with Mexico, Canada, and China, then expanding worldwide. Trump marked the introduction of the levies as “Liberation Day,” aiming to boost US manufacturing and investment.
Challenging states and small business owners argued that the law cited by the White House never mentions tariffs and does not grant the president unrestricted power to override existing trade agreements.
Chief Justice John Roberts, writing for the majority, agreed: “When Congress has delegated its tariff powers, it has done so in explicit terms and subject to strict limits. Had Congress intended to convey the distinct and extraordinary power to impose tariffs, it would have done so expressly, as it consistently has in other tariff statutes.”
The ruling was joined by the court’s three liberal justices and two Trump appointees, Amy Coney Barrett and Neil Gorsuch. Justices Clarence Thomas, Brett Kavanaugh, and Samuel Alito dissented.
Trump expressed frustration at Republican-appointed justices who sided against his plan, calling them “just being fools and lap dogs” and “very unpatriotic and disloyal to our Constitution.”
Wall Street responded positively, with the S&P 500 rising 0.7% as companies directly affected by the tariffs expressed relief. Beth Benike, owner of Busy Baby products in Minnesota, said, “I feel... like a thousand-pound weight has been lifted off my chest.” Nik Holm, CEO of Terry Precision Cycling, added, “Though it will be many months before our supply chain is back up and running as normal, we look forward to the government's refund of these improperly-collected duties.”
