Trump Vows 10% Tariff After Supreme Court Setback

Washington: US President Donald Trump has announced plans to impose a uniform 10 percent tariff on all imports into the United States after the Supreme Court of the United States struck down his key tariff policy.

In a 6-3 decision, the court ruled that the 1977 International Emergency Economic Powers Act (IEEPA) does not give the president the authority to impose tariffs. Trump had relied on this law to introduce sweeping global tariffs over the past year.

The conservative-majority court said the law does not authorize the president to set tariffs. The ruling came as a major setback for Trump, who had appointed two of the justices who voted against him.

Reacting strongly, Trump criticized certain members of the court and claimed, without presenting evidence, that foreign interests may have influenced the decision. He said he would now use a different legal authority to introduce a 10 percent tariff on all imports. Trump insisted the ruling makes him “more powerful” and said a president has broad authority to protect the country through tariffs.

Business and Political Reactions

Business groups welcomed the ruling. The National Retail Federation said the decision provides “much-needed certainty” for American companies and manufacturers. It also urged lower courts to ensure a smooth process for refunding tariffs already paid by US importers.

However, the Supreme Court did not clarify whether importers will receive refunds. Justice Brett Kavanaugh warned during proceedings that the refund process could become complicated.

According to Gregory Daco, chief economist at EY-Parthenon, the US government could lose around $140 billion in tariff revenue due to the ruling.

Democratic leaders praised the court’s decision. Senate Minority Leader Chuck Schumer called it a “win for the wallets” of American consumers. Senator Elizabeth Warren said there is currently no clear legal way for consumers and small businesses to recover money already paid in tariffs.

Research from Yale University’s Budget Lab estimates that the average effective tariff rate will now drop to 9.1 percent, down from 16.9 percent before the ruling. However, it said the rate remains the highest since 1946, excluding 2025.

International Response

The European Union said it is reviewing the court’s decision and will stay in close contact with the Trump administration.

Britain said it will work with the United States to understand how the ruling could affect trade agreements. Canada stated that the decision confirms Trump’s earlier tariffs were “unjustified.”

California Governor Gavin Newsom called for immediate refunds with interest, describing the tariffs as an “illegal cash grab.”

The issue of refunds and future tariff authority is expected to face further legal challenges in lower courts in the coming weeks.