Former President Donald Trump reacted swiftly on Friday after the U.S. Supreme Court struck down his sweeping tariffs, saying the administration would consider alternatives. Donald Trump reportedly called the Supreme Court’s ruling a “disgrace” during a White House breakfast with U.S. governors, according to CNN’s Kaitlan Collins. He also told attendees that he has a backup plan in place. However, there has been no official statement from the POTUS yet.
He had previously said that We’ll have to develop a ‘game two’ plan. Trump argued that his tariffs were necessary to protect American industries and counter unfair trade practices, particularly from countries like China. The former president has made tariffs a central tool in his economic and foreign policy since returning to office in January 2025.
Supreme Court Strikes Down IEEPA-Based Tariffs
The Supreme Court ruling, delivered in a 6-3 decision, dealt a major blow to Trump’s strategy. Chief Justice John Roberts, writing for the majority, said Trump overstepped his authority by using the International Emergency Economic Powers Act (IEEPA), a 1977 law designed for national emergencies, to impose broad import taxes. Roberts wrote, “The president must ‘point to clear congressional authorization’ to justify his extraordinary assertion of the power to impose tariffs. He cannot.”
The court said Trump’s interpretation of the law would give the executive powers that belong to Congress, violating the “major questions” doctrine. This principle requires that actions of “vast economic and political significance” must have clear approval from lawmakers.
Legal Challenge by States and Businesses
The tariffs had been challenged by 12 U.S. states and multiple businesses, most led by Democrats, who argued that the Constitution gives Congress, not the president, the authority to levy taxes and tariffs. The three dissenting justices were Clarence Thomas, Samuel Alito, and Brett Kavanaugh, while the majority included Neil Gorsuch, Amy Coney Barrett, and the three liberal justices.
Trump’s tariffs were expected to generate trillions of dollars over the next decade, with economists estimating that more than $175 billion had already been collected under IEEPA. That money may now need to be refunded.
The ruling is seen as a major check on presidential power but also leaves the door open for Trump to explore other legal avenues for tariffs. He and his advisers have indicated they are considering alternative statutes to continue applying trade pressure, signaling that U.S. trade policy under Trump is far from settled.