After Supreme Court Blow, Trump Revives Tariffs Through New Legal Route
After the Trump
administration’s punishing tariffs were invalidated, the president said he
would impose new tariffs using a different authority. It’s been a whirlwind.
1.
Supreme Court Strikes Down Tariffs:
In a 6–3 decision, the Supreme Court of the United States ruled that President
Donald Trump exceeded his authority in imposing sweeping tariffs.
2.
Majority Opinion:
Chief Justice John G. Roberts Jr. wrote that the 1970s emergency statute
invoked by Trump did not permit unilateral tariff imposition bypassing
Congress.
3.
Immediate Reaction:
Trump, informed during a White House event, said he had a contingency plan and
cut the meeting short.
4.
New Tariff Announcement:
o
On Friday, Trump imposed a 10% global tariff on
all imports using a different legal authority.
o
Announced new investigations into unfair trade
practices.
o
Confirmed the de minimis exemption would not
be reinstated.
5.
Tariff Hike:
On Saturday, Trump raised the new global tariff rate to 15%, effective
immediately.
Fiscal
& Legal Uncertainty
6.
Budget Volatility:
Tariffs had become a major revenue source; uncertainty now clouds funding for
tax cuts and spending commitments.
7.
Refund Questions:
Billions in collected duties remain in limbo. The matter has been left to the
U.S. Court of International Trade and lower courts to determine refund
procedures.
8.
Spending Plans at Risk:
Trump had intended to use tariff revenues to offset costs of programs,
including farmer bailouts.
9.
Administration’s Position:
U.S. Trade Representative Jamieson Greer stated the administration remains
committed to tariff-driven industrial protection.
Impact on
Businesses & Consumers
10.
Business Reaction:
Initial relief among U.S. companies turned to concern after new tariffs were
announced.
11.
Public Opinion:
A pre-ruling poll showed 64% of Americans disapproved of Trump’s
tariffs.
12.
Consumer Prices:
Prices of imports (apparel, electronics, furniture) may remain volatile amid
prolonged uncertainty.
13.
Corporate Impact:
Apple Inc. could benefit if lower tariffs persist; it reportedly paid over $3
billion in tariffs over three quarters.
Political
Fallout in Washington
14.
Trump Criticizes Justices:
Trump publicly attacked the justices who ruled against him, including two he
had nominated.
15.
Republican Divisions:
·
Representative Jeff Hurd lost Trump’s endorsement
after opposing tariffs on Canada.
·
Senators Chuck Grassley and Mitch McConnell
welcomed the ruling and called for Congress to reclaim trade authority.
Global
Trade Implications
16.
Trade Deals in Limbo:
Countries that negotiated tariff relief now face uncertainty.
17.
Japan & Indonesia:
Japan pledged $36 billion in U.S. investments; Indonesia signed a deal under
tariff pressure — both agreements now face questions.
18.
European Union:
A prior trade deal between the U.S. and the EU is uncertain amid refund
disputes and new unilateral tariffs.
19.
Canada Exception:
Tariffs on Canadian steel, aluminum, autos, and
lumber — imposed under separate legal authorities — remain unaffected.
Overall
Significance
·
The ruling represents a major judicial check on
executive trade authority.
·
Trump’s swift move to impose new tariffs has
extended policy uncertainty.
·
Fiscal stability, trade diplomacy, business
planning, and global economic confidence remain in flux.
On Friday (20.02.2026), the Supreme Court ruled that President Trump’s
sweeping tariffs on U.S. trading partners violated federal law. The ruling dealt
a major blow to the administration’s economic agenda and left trade deals in limbo
as world leaders tried to figure out their next steps.
Here’s what has happened since Friday:
·
Chief Justice John G. Roberts Jr.
wrote for the majority that the 1970s emergency statute that Mr. Trump invoked to
bypass Congress did not allow him to unilaterally impose the duties.
·
Mr. Trump was in the East Room of
the White House speaking to a group of governors and cabinet officials when he found
out that the court had struck down his tariffs. He told those gathered that he had
a contingency plan and ended the meeting early.
·
In a news conference at the White
House on Friday afternoon, Mr. Trump announced a 10 percent global tariff on all
imports, using a different legal authority to impose them. He also said that he
would open investigations into unfair trade practices in an effort to secure additional
tariffs, and that he would not reinstate the so-called de minimis exemption, a policy
that had allowed billions of dollars of low-value imports to enter the United States
tax-free.
·
Mr. Trump vowed to press forward
with his tariff tactics despite the ruling. “It’s ridiculous but it’s OK. Because
we have other ways, numerous other ways,” the president said on Friday. “The numbers
can be far greater than the hundreds of billions we’ve already taken in.”
·
On Saturday, Mr. Trump said that he
would raise the new global tariff rate to 15 percent, effective immediately.
·
The federal budget has reached a
new level of volatility. Tariffs had become a key source of revenue, and it’s unclear
if Mr. Trump will be able to make up the difference to help pay for an expensive
tax cut that he signed into law last year that will add to the nation’s deficit.
·
The fate of billions of dollars
in duties collected by the United States remains up in the air. The Supreme Court
has left it to the U.S. Court of International Trade and the lower courts to figure
out refund proceedings. Mr. Trump was also unsure of how the process would work.
·
The ruling may have dashed Mr.
Trump’s spending dreams, which had tariffs as their centerpiece.
He had promised to use tariff revenue to offset the costs of programs that included
a bailout for farmers who had faced retaliation from other countries because of
his trade wars.
·
But Trump aides said on Sunday that
the administration was on track to resurrect its punishing tariffs through a new
approach that they contended would better resist legal challenges.
“The president has been campaigning on tariffs and protecting American
industry for many years,” Jamieson Greer, the U.S. trade representative, said on
ABC’s “This Week.” “The policy hasn’t changed.”
·
American companies celebrated the
ruling after enduring months of burdensome import taxes. But their relief quickly
turned into newfound concern as Mr. Trump renewed his trade war with a slate of
new tariffs.
·
A poll released on Friday that was
taken before the Supreme Court’s ruling showed that 64 percent of Americans
disapproved of Mr. Trump’s tariffs.
·
Consumers will have to wait to see
how the ruling affects prices for imported products like apparel, electronics and
furniture. Economists warned that any short-term boost to the economy could be hurt
by a lengthy period of uncertainty.
·
Apple might be among the biggest
winners if lower tariffs stick. While the tech giant has moved to shield itself
from Mr. Trump’s trade squabbles, it has paid more than $3 billion in tariffs over
the past three quarters.
·
Mr. Trump castigated the justices
who ruled against him, calling them “fools and lap dogs” and said he would push
forward with new tariffs anyway. He suggested that two he had nominated during his
first term — Justices Neil M. Gorsuch and Amy Coney Barrett — were “an embarrassment
to their families” because they didn’t take his side.
·
Mr. Trump punished a Republican
lawmaker, Representative Jeff Hurd of Colorado, on Saturday by withdrawing his endorsement
of the lawmaker. Mr. Hurd had joined House Democrats in voting to cancel tariffs
on Canada. Mr. Trump backed Mr. Hurd’s right-wing primary opponent.
·
A small group of Republicans in
Congress lauded the court’s ruling, including Senator Chuck Grassley of Iowa and
Senator Mitch McConnell, the Kentucky Republican and former longtime party leader,
who called for their branch of government to reassert its role in trade matters.
·
Countries that had struck trade deals
with Mr. Trump to get lower tariff rates are now stuck with them. Last week, Japan
committed to $36 billion in investments in the United States and Indonesia signed
an agreement in Washington under threat of damaging levies. The court ruling has
left their leaders wondering if their agreements will stand.
·
In Europe, officials had hoped that
this year would bring stability to international trade after a chaotic 2025, but
the ruling now leaves last year’s trade deal between the European Union and the
United States in flux. With questions of refunds and Mr. Trump’s new unilateral
tariffs, European leaders are closely watching the president’s next move.
·
For Canada, the most detrimental
tariffs remain in place. American levies aimed at Canadian manufacturers — including
the automotive, steel and aluminum industries — and the
lumber sector were imposed under a different law and are unaffected by the court’s
ruling.