President Trump is moving forward with an alternative tariff plan after the Supreme Court ruled against the president’s authority to impose global tariffs enacted under an emergency powers law.
Trump announced on Truth Social he signed a “Global 10% Tariff on all Countries” Friday evening after calling the court’s decision “deeply disappointing” but contending the decision “made a president’s ability to both regulate trade and impose tariffs more powerful and more crystal clear rather than less.”
Trump terminated reciprocal and fentanyl related tariffs utilizing the International Emergency Economic Powers Act, which the Supreme Court ruled against his authority to use 6-3, and signed a proclamation imposing a temporary 10 percent import duty taking effect Tuesday for a period of 150 days under Section 122 of the Trace Act of 1974.
Certain critical minerals, metals, natural resources, agricultural products, pharmaceuticals, electronics, vehicles, aerospace products, textiles from specific countries and informational materials would not be subject to the surcharge according to the White House.
“We're going straight ahead with 10% straight across the board, which was the absolute right to do, and that's taking place. That's a lot of money coming into our country. And then during that period of about five months, we are doing the various investigations necessary to put fair tariffs or tariffs period on other countries. So we're doing that period, but we're immediately instituting the 10% provision, which we're allowed to do, and in the end, I think we'll take in more money than we've taken in before,” Trump told Scripps News earlier in the day.
The authority has a cap of 15 percent and requires congressional action to extend it beyond 150 days.
“Section 122 allows the president to put tariffs in place for balance of payments purposes. These can be worldwide. It has limitation. It could potentially be imposed quickly. Again, we haven't ever seen it used, but that's what it appears from the statute,” said Greta Peisch, partner at Wiley Rein and former general counsel at USTR under the Biden administration.
Officials said national security tariffs under Section 232 and existing Section 301 tariffs would remain in place. The administration also plans to initiate further Section 301 investigations in the coming days, according to United States Trade Representative Amb. Jamieson Greer.
“We expect these investigations to cover most major trading partners and to address areas of concern such as industrial excess capacity, forced labor, pharmaceutical pricing practices, discrimination against U.S. technology companies and digital goods and services, digital services taxes, ocean pollution, and practices related to the trade in seafood, rice, and other products,” Greer stated.
Trump enacted the tariffs under the International Emergency Economic Powers Act last year on what he called ‘liberation day’ in an effort to balance what the administration viewed as unfair trade with other nations. His tariff agenda underpinned his economic policy as he leaned on tariffs in negotiations with other nations to resolve conflicts and reach trade deals.
Greer rejected that the ruling undermines the president’s negotiating ability.
"It doesn't really matter what tool we use,” Greer said. “Obviously, we have to have them be legally sufficient, and that is why, over the past year, countries in good faith have negotiated with us. They've concluded deals. We signed one last night with Indonesia. We have more to come in the coming weeks and months. So they know, they understand even better, I think, than a lot of people in the United States, exactly how serious the President is about implementing his policy. And that's why they've signed the deals. They've told us they're going to state, stick to it, and we're going to hold ours as well."
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The court's opinion came down as President Trump met with governors at the White House Friday morning. The president was handed a note from an aide, and called the ruling a disgrace, according to a source familiar with the meeting. Another source familiar with the meeting said it was a productive meeting, but that the president ended it early after the tariff news broke.
Louisiana Governor Jeff Landry said the ruling “completely overshadowed” what he believed “was getting ready to be a very productive meeting with the President,” noting the president talked about the economy and public safety.
The administration was devastated by the ruling, according to a source familiar with the administration’s thinking, who noted the administration had tried to do as much as they could to prepare for it. The day was about how Trump could save face and show strength, according to the source.
Greer said there was confidence behind the scenes.
"There was, I would say extreme confidence, right? These are plans. Listen, we've been planning tariff policies for five years. The President left office first term, and there are lots of options. That's why it is relatively easy for us on the same day that the tariff would shut down, because we implement them,” Greer said.
The president has frequently underscored the importance of his tariff policy in public remarks ahead of the Supreme Court decision. Several hours after it, the President took the press briefing room podium to address the case directly.
“The process takes a little more time, but the end result is going to get us more money, and I think it's going to be great,” Trump said.
The ruling comes as the president has sought to press a positive economic message in a mid-term election year, amidst Americans concerns with the economy.
“I do think it's a strong economy, and I think Trump shares that view,” said economist Stephen Moore.
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The same day as the administration grappled with the Supreme Court’s ruling, it also dealt with new data that showed the country’s gross domestic product growth cooled, increasing at a 1.4 percent annual rate the fourth qarter, down from 4.4 percent previously.
Moore called Friday’s GDP report number disappointing, but pointed to last year’s government shutdown and added “the government sector of the economy shrank and the private sector grew, which is exactly what conservatives like me want to see.”
Trump said there was “still much to do” during remarks in Rome, GA the evening prior to the ruling but touted what he views as economic success with inflation, tax cuts, regulations cuts and trade policies.
“We've achieved more in one year than most administrations achieve in eight years, and we're just getting started. We're just getting started. We got things that are happening that are as good as what you've heard,” Trump told the crowd.
Looking forward in light of the court’s ruling, still, Treasury Secretary Scott Bessent said tariff revenue would remain unchanged this year.
“Treasury’s estimates show that the use of Section 122 authority, combined with potentially enhanced Section 232 and Section 301 tariffs will result in virtually unchanged tariff revenue in 2026,” Bessent said during remarks at the Economic Club of Dallas.
The court did not weigh in whether tariffs would need repaid, though, as officials suggested they would see how it plays out in litigation.
“"I mean, there's a legal process for all of these things. And so if they're claimants, and they these are things they've raised at the lower courts already, and so they'll go through the legal process. The courts have decided that these tariffs, you know, the President, have the power to do these tariffs, and now the courts have to figure out how to unwind all that,” Greer said.
The ruling comes days ahead the president’s State of the Union address, in which a senior administration official previously said the president would review the last year and lay the groundwork for the year ahead and beyond.
