U.S. President Donald Trump signed an executive order Friday evening imposing a new 10% global tariff on all imports.
The move came hours after the Supreme Court issued a 6-3 decision striking down the administration’s previous “Liberation Day” tariff framework, ruling that the executive branch had exceeded its constitutional authority.
The President, speaking from the James Brady Press Briefing Room alongside Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, denounced the ruling and the justices involved. Trump characterized the decision as “terrible” and “deeply disappointing,” labeling the justices who voted against his policy as “fools and lap dogs.”
Supreme Court Rules President Overstepped Authority
In a 6-3 majority opinion written by Chief Justice John G. Roberts Jr., the Court concluded that Trump’s use of the International Emergency Economic Powers Act (IEEPA) of 1977 to impose broad-based tariffs was unconstitutional. The court found that the power to levy taxes and tariffs remains an explicit prerogative of the legislative branch.
“The Framers did not vest any part of the taxing power in the Executive Branch,” Roberts wrote.
He further emphasized the limits of delegated authority: “When Congress has delegated its tariff powers, it has done so in explicit terms and subject to strict limits. Had Congress intended to convey the distinct and extraordinary power to impose tariffs, it would have done so expressly, as it consistently has in other tariff statutes.”
The majority determined that taxation authority clearly belongs to Congress and that the president had exceeded his powers by relying on emergency authorities to reshape global trade relationships.
The Court’s decision opens the possibility of billions of dollars in potential tariff refunds. However, the majority did not directly address whether companies could recover funds already paid.
The ruling represents a significant victory for the coalition of U.S. states and private businesses that challenged the duties. However, the dissent, led by Justice Brett Kavanaugh and joined by Justices Alito and Thomas, argued the tariffs were “clearly lawful.” Trump praised Kavanaugh’s 63-page dissent as “genius.”
Trump responds with New Executive Order
Justices Brett Kavanaugh, Samuel Alito, and Clarence Thomas dissented. Kavanaugh wrote, “The tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful.”
President Trump reacted sharply to the ruling. Speaking at the White House, he called the decision “deeply disappointing” and said he was “absolutely ashamed” of justices who voted against him. He also described the ruling as “terrible” and labeled the justices who rejected his trade policy as “fools,” at one point referring to some as “fools and lap dogs” and “disloyal to our Constitution.”
“Their decision is incorrect,” Trump said. “But it doesn’t matter because we have very powerful alternatives.” He added, “We have alternatives – great alternatives and we’ll be a lot stronger for it.”
Later on Truth Social, Trump announced immediate action: “It is my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries, which will be effective almost immediately. Thank you for your attention to this matter!”
The new tariff is being implemented under Section 122 of the Trade Act of 1974, which allows the president to impose duties of up to 15 percent to address a “large and serious balance-of-payments deficit.” Tariffs under this authority may remain in effect for no more than 150 days unless Congress extends them.
The administration confirmed that the duties will take effect Feb. 24 at 12:01 a.m.
While the White House fact sheet includes exemptions for specific sectors such as energy, pharmaceuticals, and aerospace, as well as protections for USMCA partners, the law requires the duties to be “nondiscriminatory” across all other trading partners.
Economic Implications and Refund Litigation
The invalidated tariffs, first introduced on Mexico, Canada, and China before expanding globally on what Trump called “Liberation Day,” had generated more than $133 billion in revenue for the Treasury Department as of December, according to federal data. The Congressional Budget Office estimated the tariffs would have an economic impact of roughly $3 trillion over the next decade.
The Court’s decision represents a major victory for U.S. states and small businesses that challenged the tariffs, arguing that the International Emergency Economic Powers Act does not explicitly authorize tariff imposition. Lawyers for the challengers told the Court that the statute made no mention of “tariffs” and that Congress did not intend to grant the president an “open-ended power to junk” existing trade agreements and tariff rules.
Despite the ruling, refund litigation may extend for years. Trump said the administration would “end up being in court for the next five years” over whether businesses are entitled to reimbursement.
Justice Kavanaugh, in dissent, warned that the process was “likely to be a ‘mess.’”
Impact on Global Security and Trade
The sudden shift in U.S. trade policy has introduced fresh volatility into international markets. Defense and foreign policy analysts suggest that the “whipsawing” nature of these trade policies may complicate long-standing security alliances and manufacturing supply chains.
The President remained unbowed on social media late Friday, posting on Truth Social: “It is my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries, which will be effective almost immediately. Thank you for your attention to this matter!”
As the February 24 deadline approaches, global trade partners and U.S. manufacturers must now prepare for a new era of “temporary” but sweeping trade barriers, even as the previous legal foundation for such taxes lies in ruins.