By Spy Uganda
U.S. President Donald Trump has unveiled a new 10% global tariff on imports, just hours after the Supreme Court of the United States struck down his previous sweeping trade measures in a major ruling that limits presidential authority over tariffs.
The decision, delivered in a 6–3 judgment, found that the president had exceeded his legal powers when he imposed broad import taxes on goods from nearly every country last year. The ruling marked a significant setback for Trump’s trade agenda while opening the possibility of billions of dollars in refunds for businesses and U.S. states that challenged the policy.
Speaking at the White House on Friday, Trump condemned the ruling as “terrible” and sharply criticised justices who voted against his tariffs, insisting his administration would pursue alternative legal avenues to maintain import duties.
“We have alternatives, great alternatives, and we’ll be a lot stronger for it,” he said, adding that any refunds tied to the overturned tariffs would likely face lengthy legal battles.
The dispute centred on tariffs introduced under the International Emergency Economic Powers Act (IEEPA), a 1977 law that allows presidents to regulate economic activity during national emergencies. The administration argued the measures were necessary to boost domestic manufacturing and protect U.S. industry.
Writing for the majority, Chief Justice John Roberts said Congress had not granted the president unlimited authority to impose tariffs.
“When Congress has delegated its tariff powers, it has done so in explicit terms and subject to strict limits,” Roberts wrote, adding that lawmakers would have clearly authorised such sweeping powers if intended.
The majority included the court’s three liberal justices along with two conservative justices appointed by Trump, Amy Coney Barrett and Neil Gorsuch. Justices Clarence Thomas, Brett Kavanaugh and Samuel Alito dissented.
New Tariff Plan Announced
Within hours of the ruling, Trump signed a proclamation imposing a new 10% tariff using Section 122 of U.S. trade law, a rarely used provision allowing temporary tariffs of up to 15% for 150 days pending congressional action. The measure is set to take effect on 24 February.
The order provides exemptions for certain minerals, fertilisers, pharmaceuticals, some electronics and selected agricultural goods. Canada and Mexico will remain largely exempt under the US-Mexico-Canada Agreement.
Officials said countries with existing trade agreements, including the United Kingdom, India and members of the European Union, will now face the uniform 10% tariff rather than previously negotiated rates.
The court’s ruling was welcomed by many businesses that argued the earlier tariffs sharply increased costs and disrupted supply chains. Wall Street reacted positively, with the S&P 500 rising about 0.7% after the decision.
Small business owners involved in the case described the judgment as a relief, though many warned it could take months or years for trade operations to normalise.
Political leaders also demanded repayment. California Governor Gavin Newsom called the tariffs an “illegal cash grab,” while Illinois Governor JB Pritzker sought billions of dollars in refunds for residents of his state.
The United States has collected at least $130 billion in tariffs under the contested policy, and hundreds of companies have already filed lawsuits seeking reimbursement. Analysts warn that determining refunds could become a lengthy and complex legal process.
International reaction has been cautious. French President Emmanuel Macron said the ruling highlighted the importance of democratic checks and balances, while European officials said they were studying the implications of Washington’s new tariff approach.
Economists say the combination of court challenges and newly imposed tariffs could prolong uncertainty in global trade markets, even as businesses celebrate the legal victory.
For now, the ruling represents a rare judicial rebuke of Trump’s trade strategy, but his swift introduction of new tariffs signals that the battle over U.S. trade policy is far from over.
