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

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

The Supreme Court’s recent decision has dealt a significant setback to Donald Trump’s plans for his second term. For months, the former president had predicted such a ruling would be disastrous, labeling it an “economic and national security catastrophe.” Yet the six-justice majority dismissed his warnings, asserting that Congress—not the executive branch—holds the authority to implement tariffs. This ruling clarified that the Emergency Economic Powers Act of 1977 did not grant Trump the sweeping powers he claimed.

Trump’s frustration was evident during a hastily called press conference on Friday. He criticized the justices who ruled against him, calling the three conservative justices “ashamed” and the liberal trio a “disgrace.” Despite the loss, he vowed to reintroduce tariffs through alternative legal avenues, including a temporary 10% global tariff he promised to sign that same day.

A Rare Check on Executive Authority

The decision marks a notable constraint on Trump’s use of presidential power. Over the past year, the court’s majority had generally supported his initiatives, especially in areas like immigration and federal restructuring. However, this case, expedited as an emergency, now limits his ability to act unilaterally in trade policy. With several other high-profile cases challenging his executive actions pending, this may not be the only hurdle he faces soon.

“The reality is the president is going to have tariffs as part of his trade policy going forward,” said Jamieson Greer, Trump’s lead trade adviser, last month. He emphasized the White House had “a lot of different options” to adapt if the tariffs were overturned.

While Trump retains some tools, they are more constrained. These alternatives require detailed reports from government agencies and impose restrictions on the tariffs’ scope and duration. The era of imposing triple-digit tariffs with minimal effort—such as through a social media post—appears to be over. Future tariffs will demand extended planning periods, potentially reducing the immediate economic impact seen in his previous moves.

With midterm elections approaching, Trump’s congressional allies may now feel more confident. His tariffs, which raised consumer costs, had drawn criticism among voters, making Republican candidates vulnerable to Democratic backlash. The ruling lessens that risk temporarily. Nonetheless, it weakens his leverage in pushing nations to comply with U.S. demands and could lead to the return of tariff revenue collected in recent months.

Brett Kavanaugh, in his dissent, cautioned that the process of revising tariffs might become “a mess,” highlighting the uncertainty ahead. The administration had ample time to prepare, as prior court signals suggested a possible unfavorable outcome. Yet, the ruling underscores a shift in the balance of power, giving Congress a stronger role in shaping trade policy. Trump’s path forward now depends on securing legislative backing, a challenge given the narrow Republican majorities in Congress.

This decision sets the stage for a pivotal moment during Trump’s upcoming State of the Union address. Traditionally, the speech offers an opportunity to rally support, but with his tariff authority diminished, the president may face an awkward reckoning with lawmakers. The ruling signals a new era of checks on executive power, reshaping the dynamics of U.S. trade policy for the foreseeable future.