Supreme Court Strikes Down Trump's Tariffs; He Vows Workaround
SCOTUS ruled 6-3 that Trump exceeded his authority imposing IEEPA tariffs. He's pivoting to Section 122 tariffs and new trade investigations to restore his agenda.
MAXIMUM CHAOS
A historic 6-3 Supreme Court loss on core trade authority, immediate executive pivot with new tariff mechanisms, $142 billion in invalidated collections, and state-level refund demands combine for an extremely eventful day with major economic and legal consequences.
Key Developments
The Supreme Court delivered a significant blow to Trump's trade strategy today, ruling 6-3 that the International Emergency Economic Powers Act does not authorize the President to impose tariffs. Chief Justice Roberts' majority opinion invalidated Trump's entire 2025 tariff framework—which had collected $142 billion—finding that IEEPA's text does not extend to taxation. The ruling vacates tariffs on Canada, Mexico, and other countries tied to declared emergencies over fentanyl and trade deficits.
Trump responded swiftly, calling the decision "deeply disappointing" and vowing to proceed with new tariff authority. He announced plans to impose a 10% global baseline tariff under Section 122 of the Trade Act of 1974 early next week, along with Section 301 investigations into unfair trade practices. Section 122 offers a workaround but with constraints: it caps tariffs at 15% and expires after 150 days unless Congress extends it. California Governor Newsom demanded immediate refunds with interest, calling the struck-down tariffs an "illegal cash grab."