Tariffs ruling is major blow to Trump’s second-term agenda

Tariffs Ruling is Major Blow to Trump’s Second-Term Agenda

Donald Trump had long anticipated a Supreme Court decision that would undermine his authority, warning for months that such a ruling would be disastrous. His latest tariffs, he claimed, were essential to safeguarding economic and national security. However, the court’s six-justice majority on Friday rejected his claims, affirming that Congress, not the executive branch, holds the power to levy tariffs. The justices noted that the Emergency Economic Powers Act of 1977, the legal foundation for Trump’s actions, did not grant him the sweeping authority he asserted.

In a swift press conference following the ruling, Trump expressed frustration, labeling the three conservative justices who opposed his tariffs as “disgraceful.” He criticized their decision as a setback for his administration’s economic strategy and vowed to use alternative methods to reimpose tariffs. Among his plans is a new temporary 10% global tariff, which he intends to sign immediately.

“I’m ashamed of the three justices who struck down my tariffs,” Trump said. “The liberals on the court are a disgrace.”

The ruling marks a significant restraint on Trump’s expansive executive powers, which have been central to his policy initiatives. Over the past year, the majority of justices demonstrated a willingness to support his agenda, particularly on immigration and federal governance reforms. Yet, this case, expedited as an emergency, now limits his ability to act unilaterally on trade matters.

With several other contentious cases pending—such as those related to birthright citizenship and the dismissal of a Federal Reserve governor—this decision may not be the only challenge Trump faces. It weakens his leverage in pushing other nations to comply with U.S. demands and could reduce the economic pressure he previously exerted through abrupt tariff changes.

While the justices deferred the issue to a lower court, Justice Brett Kavanaugh’s dissent warned of potential chaos in the process. The Trump administration had ample time to prepare, as prior judicial trends suggested a likelihood of adverse outcomes. Jamieson Greer, the president’s chief trade adviser, acknowledged this, stating, “The reality is the president will still have tariffs as part of his trade policy going forward.”

However, the remaining options are more constrained. These require detailed justifications from government agencies and impose limits on the scope and duration of tariffs. The era of rapid, unilateral tariff decisions—like the “Liberation Day” tariffs of last year—seems to be over. Future tariffs will demand extended planning, giving trading partners more time to adapt.

Trump’s push for congressional approval of new tariffs remains a possibility, but with narrow Republican majorities in both chambers and upcoming midterms, the prospects are dim. Some of his allies in Congress may now feel more confident, as the ruling has eased pressure on them to defend his trade policies. This shift could also reduce the political risk for Republican candidates in key districts, who previously faced criticism for supporting Trump’s measures.

The decision adds a layer of complexity to Trump’s upcoming State of the Union Address, where he will likely face scrutiny over his trade strategy. As the administration adjusts to this new reality, the focus will shift to how effectively it can navigate the altered landscape of executive power.