Tariffs ruling is major blow to Trump’s second-term agenda
Tariffs Ruling Is Major Blow to Trump’s Second-Term Agenda
Supreme Court Limits Presidential Tariff Power
On Friday, a six-justice majority of the Supreme Court ruled against President Donald Trump, asserting that Congress, not the executive branch, holds the authority to impose tariffs. The justices determined that the Emergency Economic Powers Act of 1977, which Trump relied on to justify his tariff policies, did not grant him the sweeping powers he claimed. This decision serves as a rare restraint on the president’s expansive executive actions, particularly in the realm of trade.
Trump’s Reaction to the Ruling
Trump, in a hastily organized press conference that afternoon, expressed frustration with the justices who invalidated his tariffs. He described the three conservative judges who opposed his policies as “ashamed” and criticized the three liberal justices as a “disgrace.” The president also pledged to reimpose tariffs using alternative legal frameworks, including a new temporary 10% global tariff he intended to sign by Friday.
“The reality is the president is going to have tariffs as part of his trade policy going forward.”
Despite his indignation, Trump’s team had anticipated this outcome, highlighting the administration’s preparedness for the ruling.
Implications for Trump’s Executive Authority
The ruling weakens Trump’s ability to unilaterally influence international trade agreements, potentially undermining his strategy to pressure other nations into concessions. It also casts doubt on his reputation as an unyielding leader, as his tariff powers are now subject to stricter congressional oversight. While the justices deferred the matter to a lower court, Justice Brett Kavanaugh warned in his dissent that the process could become a “mess.”
Looking Ahead: Challenges and Opportunities
With other pending cases involving executive authority—such as efforts to end birthright citizenship and remove a Federal Reserve governor—this may not be the only hurdle for Trump in the coming months. The decision could also lead to the return of tariff revenue collected over the past year, affecting the administration’s financial strategy.
For now, the ruling reduces a key vulnerability for Trump’s Republican allies, who might have faced criticism for supporting his controversial trade policies. The president’s aggressive tariffs, which have raised consumer costs, were previously a political liability in competitive districts. However, the need for Congress to approve future tariffs could create new challenges, especially with narrow majorities and looming midterms.
As the president prepares for his State of the Union address on Tuesday, the ruling adds an awkward layer to his agenda. The era of swiftly imposing large-scale tariffs through executive action has ended, requiring more deliberation and time to implement new measures. This shift may allow trading partners to respond more effectively, potentially altering the dynamics of global economic negotiations.