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Trump threatens steeper tariffs following court ruling
U.S. President Donald Trump has pledged to impose even higher tariffs on nations attempting to circumvent a recent Supreme Court decision that invalidated his broad trade levies. In a post on Truth Social, Trump warned that countries exploiting the ruling-particularly those he claims have long exploited the U.S.-would face "a much higher Tariff, and worse" than previously agreed.
Court blocks Trump's tariff authority
The Supreme Court ruled that Trump exceeded his executive powers by enacting sweeping global tariffs under the 1977 International Emergency Economic Powers Act (IEEPA). Following the decision, Trump announced a 10% global tariff, later increasing it to 15%, set to take effect Tuesday.
Tariffs, taxes on imported goods, are paid by companies importing foreign products to the U.S. government. While the court's ruling targeted Trump's use of the IEEPA, a complex system of targeted tariffs on specific goods or countries remains in place, with some products exempt.
Administration explores alternative legal paths
U.S. Trade Representative Jamieson Greer confirmed the administration is examining other legal avenues to raise tariffs, though with less flexibility than under the IEEPA. Greer told ABC News the new approach would yield "roughly equivalent" tariffs but would require congressional approval after 150 days.
Trump, however, dismissed the need for legislative backing, claiming in a Truth Social post that approval had already been secured "in many forms, a long time ago." Senate Democratic Leader Chuck Schumer countered, vowing to block any extension of the 150-day tariffs, calling them "harmful" and part of Trump's "economic carnage."
Economic and diplomatic fallout
Trump has long defended tariffs as a tool to boost domestic manufacturing, create jobs, and address national security concerns, framing the U.S. trade deficit as an "extraordinary and unusual threat." Critics, however, argue tariffs raise consumer prices and disrupt the global economy.
"Senate Democrats will continue to fight back against Trump's tariff tax, and will block any attempt to extend these harmful tariffs when they expire this summer."
Senate Democratic Leader Chuck Schumer
A Federal Reserve Bank of New York analysis found that 90% of the cost of Trump's tariffs on Mexico, China, Canada, and the EU was borne by U.S. companies.
Global trade deals in limbo
The Supreme Court's decision has created uncertainty for countries that negotiated individual trade agreements with the U.S. after the IEEPA tariffs were announced last April. The White House stated these nations would now face the new 15% global tariff, despite earlier assurances from Greer that existing concessions would be honored.
The UK, which had secured a 10% rate on most goods, now faces the higher 15% tariff. The British government expressed confidence in maintaining its "privileged trading position," though businesses have voiced frustration over the shifting landscape.
Fraser Smeaton, co-founder of a UK costumes company exporting 60% of its products to the U.S., described the past year as a "rollercoaster," with tariffs fluctuating from 0% to 145% before settling at 20%-only to spike again to 15% after the ruling.
Legal and financial uncertainties persist
Trump labeled the Supreme Court's decision "ridiculous, poorly written, and extraordinarily anti-American." A key unresolved question is whether businesses and consumers can reclaim the estimated $130 billion paid under the now-invalidated IEEPA tariffs. While the court ruled the tariffs illegal, it provided no guidance on refunds.
Treasury Secretary Scott Bessent told CBS the issue would likely be addressed in lower courts, echoing Greer's confidence that tariff revenue would remain unchanged this year and beyond.
