It is the first major piece of Trump’s broad agenda to come squarely before the nation’s highest court, which he helped shape with the appointments of three conservative jurists in his first term.
The majority found that the Constitution “very clearly” gives Congress the power to impose taxes, which include tariffs. “The Framers did not vest any part of the taxing power in the Executive Branch,” Chief Justice John Roberts wrote.
In dissent, Justice Brett Kavanaugh wrote, “The tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful.”
Trump vows escalation, announces 10% tariff
Reacting at a lengthy press conference, Trump announced that he will sign an executive order imposing a 10% global tariff under Section 122, though those tariffs would be limited to 150 days unless extended legislatively.
“Income coming in from tariffs will increase,” Trump said. “The Supreme Court made my ability to impose tariffs more powerful,” he added, arguing that the ruling had opened alternative pathways.
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“I will go in a stronger direction now,” Trump said.
At one point, he remarked, “I could do anything I want to do, but I can’t charge any money,” and also asserted, “I am allowed to impose an embargo.”
Trump said the ruling would not “substantially constrain” his tariff authority going forward and mentioned other legal avenues, including the Trade Expansion Act and the Tariff Act of 1930. He acknowledged that those options would involve “a little bit longer process.”
“Their decision is incorrect. But it doesn’t matter because we have very powerful alternatives,” Trump said.
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Sharp criticism of justices
Trump thanked Justices Clarence Thomas, Samuel Alito and Brett Kavanaugh for dissenting and criticised Chief Justice Roberts and Justices Amy Coney Barrett and Neil Gorsuch for siding with the majority.
Referring to the latter group, Trump called them “fools and lapdogs for the RINOs and radical left Democrats” and described their action as “very unpatriotic and disloyal to our Constitution.”
“I think it’s an embarrassment to their families, if you want to know the truth. The two of them,” Trump said of Gorsuch and Barrett, adding that “their decision was terrible.” He declined to say whether he regretted nominating them.
“I read very well. Great comprehension,” Trump said. “I read everything there is to read. And I said, ‘Can’t lose this case.’”
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Despite previously warning that striking down the tariffs would “literally destroy the United States of America,” Trump later struck a more optimistic tone, saying the ruling brought “great certainty” and predicting the country would grow stronger.
Which tariffs are struck down?
Friday’s decision nullifies tariffs imposed under IEEPA, including the so-called “Liberation Day” tariffs applied to nearly every country, as well as levies on Canada, Mexico and China. Trump had also cited IEEPA to impose additional tariffs on Brazil and India tied to separate disputes.
However, other tariffs remain in effect. Trump used Section 232 of the 1962 Trade Expansion Act to impose sectoral tariffs on steel, aluminium, cars, copper, lumber and related products worldwide.
The ruling leaves open questions about what happens to tariff revenue already collected and whether the administration will refund importers. The National Foreign Trade Council urged the White House to establish a streamlined process to return tariff revenue quickly.
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Political reaction splits GOP
Some Republican leaders backed Trump’s broader trade strategy while acknowledging the constitutional limits outlined by the court.
Senate Majority Leader John Thune said tariffs can be “an important and effective tool” and called for continued work between Congress and the administration.
Sen. Mitch McConnell said there is “now no room for doubt” that using IEEPA to impose tariffs without Congress is illegal and urged the executive to convince lawmakers under Article I if it wants sweeping trade measures.
Sen. Susan Collins said the ruling reaffirms that only Congress has the authority to impose tariffs, while Sen. John Curtis said the system of checks and balances remains strong.
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House Speaker Mike Johnson said Congress and the administration would determine the best path forward in the “coming weeks”.
Industry, markets and economic impact
Industry groups offered mixed reactions. Italian winemakers warned the decision could deepen uncertainty if tariffs are reimposed through other legal channels. US technology and consumer goods trade associations called the ruling a “pivotal moment” and urged the administration to avoid replicating tariffs through alternative statutes.
The United Steelworkers union said tariffs should be used “strategically” to protect American workers, while the Distilled Spirits Council urged a return to “zero-for-zero tariffs” with key partners.
Wall Street reacted calmly. The S&P 500 and Nasdaq posted modest gains while the Dow slipped slightly in midday trading, suggesting investors had anticipated such a ruling.
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Economists said consumers are unlikely to see sharp price reductions immediately. The Federal Reserve has estimated inflation is about half a percentage point higher than it would be without the tariffs, though many duties were rolled back, delayed or absorbed by companies.
Neal Katyal, who argued the case against the administration, called the ruling “a complete and total victory,” saying it reaffirmed that Congress, not “any one man”, controls the power to tax the American people.
For Trump, however, the decision marks the most consequential judicial setback yet to a central pillar of his economic strategy — even as he signals that the tariff fight is far from over.
(With inputs from Reutes, AP)
“The Framers did not vest any part of the taxing power in the Executive Branch,” Chief Justice John Roberts wrote. (AI generated graphic)