US President Donald Trump has said that he will impose a fresh global tariff of 10 percent on US trading partners after the US Supreme Court ruled that his earlier tariff regime, introduced under emergency powers, was unlawful.

 

In a 6-3 decision, the court held that the International Emergency Economic Powers Act (IEEPA) does not give the president authority to impose tariffs. The ruling upheld earlier lower court decisions that found Trump exceeded his powers by using the law to levy import taxes. Three liberal justices joined three conservatives in the majority.

 

Trump responded by signalling he would continue pursuing tariffs through other legal means. Speaking to reporters, he said he would move forward “using alternative authorities” and criticised members of the court, saying they lacked “the courage to do what’s right for the country”.

 

He also said that trade negotiations conducted while the tariffs were in place would not be affected. Asked about talks with India, Trump said, “The India deal is on,” and added that tariffs introduced under different statutes would replace those struck down by the court. “All the deals, we’re just going to do it a different way,” he said.

 

Trump defended his approach to trade policy, stating, “In order to protect our country, a president can actually charge more tariffs than I was charging in the past.” He also said, “The Supreme Court’s decision today made a president’s ability to both regulate trade and impose tariffs more powerful and more crystal clear, rather than less.”

 

The court ruled that the Constitution grants Congress the authority to impose taxes and tariffs, not the president acting alone. In its opinion, the court said that if Congress had intended to grant tariff powers under IEEPA, it “would have done so expressly, as it consistently has in other tariff statutes”.

 

The legal challenge was brought by businesses affected by the tariffs along with 12 US states, most governed by Democrats. The case focused on Trump’s use of IEEPA, a law historically used to impose sanctions or freeze assets during national emergencies rather than levy import duties.

 

Canada welcomed the ruling, with its trade minister saying the tariffs were “unjustified”. The United Kingdom said it would work with Washington to assess how the decision could affect the bilateral trade deal. Germany and the European Union said they were in contact with the US administration and were analysing the ruling. 

 

Trump has used tariffs as a central element of his economic and foreign policy since returning to office, initiating disputes with multiple trading partners. He has argued that tariffs are necessary for US economic security. In November, he said that without them “the rest of the world would laugh at us”.

 

Administration officials said the government would attempt to preserve as many tariffs as possible by invoking other statutory provisions. 

 

According to economists at the Penn-Wharton Budget Model, tariffs imposed under IEEPA generated more than $175 billion. The Congressional Budget Office has estimated that if all existing tariffs remain in place, they could generate about $300 billion annually over the next decade. US Treasury data showed net customs duty receipts reached $195 billion in fiscal 2025.