Businesses face a new wave of uncertainty after the Supreme Court struck down tariffs imposed by Donald Trump under an emergency powers law, and Trump vowed to work around the ruling to keep his tariffs in place.

The Trump administration says its tariffs help boost American manufacturers and reduce the trade gap. But many US businesses have had to raise prices and adjust in other ways to offset higher costs spurred by the tariffs.

It remains to be seen how much relief businesses and consumers will actually get from Friday's ruling. Within hours of the court's decision, Trump pledged to use a different law to impose a 10% tariff on all imports that would last 150 days, and to explore other ways to impose additional tariffs on countries he says engage in unfair trade practices.

"Any boost to the economy from lowering tariffs in the near-term is likely to be partly offset by a prolonged period of uncertainty," said Michael Pearce, an economist at Oxford Economics. "With the administration likely to rebuild tariffs through other, more durable, means, the overall tariffs rate may yet end up settling close to current levels."

For a few hours on Friday, congressional Republicans seemed to get some relief from one of the largest points of friction they have had with the Trump administration. It didn't last.

The Supreme Court struck down a significant portion of President Donald Trump's global tariff regime, ruling that the power to impose taxes lies with Congress. Many Republicans greeted the Friday morning decision with measured statements, some even praising it, and GOP leaders said they would work with Trump on tariffs going forward.

But by the afternoon, Trump made clear he has no intention of working with Congress and will instead go it alone by imposing a new global 10 per cent import tax. He's doing so under a law that restricts the tariffs to 150 days and has never been invoked this way before. That decision could not only have major implications for the global economy, but also ensure that Republicans will have to keep answering for Trump's tariffs for months to come, especially as the midterm elections near.

The Supreme Court's striking down of President Donald Trump's global tariffs, while a relief to many, heralds more months of uncertainty as US businesses brace for new levies and a fight for refunds plays out.

The US Supreme Court has declared illegal Donald Trump's broad global tariffs imposed under the International Emergency Economic Powers Act.

Donald Trump lashed out at the Supreme Court for striking down much of his sweeping tariffs, saying he was "ashamed" and called the ruling "deeply disappointing".

The India-US trade "deal is on," said Donald Trump, even as the United States Supreme Court ruled that the American president's sweeping emergency tariffs are illegal.

US President Donald Trump may have lost the tariff battle for now after the US Supreme Court struck down his sweeping measures. But Trump has got some supporters, within the Supreme Court.

US Trade Representative Jamieson Greer said that the Trump administration will continue to execute the President's trade agenda despite the Supreme Court's ruling limiting the use of emergency tariff powers

India is studying the developments of the US Supreme Court striking down tariffs as illegal, the Commerce Ministry said.

India is studying the developments on the US tariff and their implications, the commerce ministry said on Saturday.

"We have noted the US Supreme Court judgement on tariffs yesterday (Friday). US President Donald Trump has also addressed a press conference in this regard," it said.

"Some steps have been announced by the US administration. We are studying all these developments for their implications," the ministry added.

(PTI)

French President Emmanuel Macron said on Saturday that the U.S. Supreme Court ruling on President Donald Trump's trade tariffs shows that it is good to have counterweights to power and the rule of law in democracies. 

"It is not bad to have a Supreme Court and, therefore, the rule of law," he said at the annual agricultural salon in Paris, in response to a question about Friday's ruling by the U.S. Supreme Court that tariffs imposed by President Donald Trump under an economic emergency law were illegal.

"It is good to have power and counterweights to power in democracies," Macron said.

(Reuters)

On Friday, the Supreme Court delivered a sharp rebuke of Donald Trump's use of tariffs, which he slapped on countries often arbitrarily via a simple order on social media.

Opposition leaders in India on Saturday welcomed the decision of the US Supreme Court striking down tariff measures imposed during the tenure of US President Donald Trump, terming the verdict significant for global trade and rule-based economic order.

Aam Aadmi Party (AAP) MP Ashok Mittal also referred to fluctuations in tariff levels in recent years.

"On August 27, 2025, the US increased the tariff from 25 per cent to 50 per cent. Earlier, under the interim trade deal between India and the US, it had been brought down to 18 per cent. Now, the US Supreme Court has termed President Trump's tariff campaign illegal, stating that it was against the provisions of the 1970 law that allowed such measures," the AAP leader said.

(IANS)

Welcoming the reported US Supreme Court order striking down recently imposed tariffs, Indian industry representatives on Saturday said the move would significantly boost exports, strengthen trade ties and revive employment across sectors.

Speaking to IANS, Nainesh Pachchigar, Gujarat State President of the India Bullion and Jewellers Association (IBJA), said the industry has welcomed the US Supreme Court's decision that declared the tariffs imposed by former US President Donald Trump as illegal and set them aside.

He said that although Trump had earlier reduced import duty on diamonds to zero per cent following a trade understanding with India, diamond jewellery and related sectors were still facing higher tariffs of around 18 per cent.

(IANS)

Neal Katyal, the son of Indian immigrants who argued the consequential tariff case on behalf of small businesses and won, in an interview said, "One of the great things about the American system is what just happened today. I was able to go to court - the son of immigrants - able to go to court and say on behalf of American small businesses, 'Hey, this President is acting illegally.'" 

"I was able to present my case, have them ask really hard questions at me, it was a really intense oral argument and at the end of it, they voted and we won," he said.

"That is something so extraordinary about this country. The idea that we have a system that self-corrects, that allows us to say 'You might be the most powerful man in the world but you still can't break the Constitution. That to me is what today is about," he added.

The US Supreme Court's 6-3 ruling handed Trump a stinging loss on an issue crucial to his economic agenda.

US Senator Chuck Schumer has called US President Donald Trump's imposition of tariffs "illegal' and has also said that the "money must be returned."

"First, the Supreme Court did what everyone knew was the right thing. Everyone knew that if the court was ruling correctly, it would throw it out. But it has thrown America into chaos. All of the promises Trump made that he is growing to bring back manufacturing jobs, they're lower. The prices will fall, they've gone higher. The number one thing people in America care about is prices tariffs have caused them. Trump didn't mention prices in his whole speech. He was like a ten-year-old: name calling, foot stomping, berating Supreme Court Justices. He is like a baby," he said

On being asked what he thought about Trump belittling Supreme Court Justices, Schumar said, "I think it is outrageous. What he should have done since the tariffs have been such a disaster. He should have said, hey, okay, the Supreme Court ruled, I'm getting rid of them. But he can't, so he's coming with another plan to impose the same tariffs that are going to keep the price up, lose more and more manufacturing jobs, increase inflation, increase the trade deficit. All these bad things he is going to try again."

Congress MP Manish Tewari has described the 6-3 verdict of the US Supreme Court on the Trump administration's tariffs as a strong reminder to constitutional courts worldwide about their role in checking executive excess.

Speaking on the ruling, Tewari said, "The 6-3 verdict of the US Supreme Court is a message to all constitutional courts around the world that they are charged with the responsibility of checking executive excess, and if the judiciary does not step up to the plate or does not perform its duty, then democracies turn into autocracies."

Tewari described the verdict as a "welcome decision" but cautioned that it could trigger an unprecedented institutional confrontation in the United States.

"The decision of the US Supreme Court is a welcome decision. However, it also sets the stage for an unprecedented confrontation between the Trump administration and the judiciary on the one hand, and the legislature on the other hand. Because the US Supreme Court has clearly said that the power to levy tariffs does not rest in the executive, it rests with the legislature. Therefore, now it's for the US Congress to assert itself, exert itself and appropriate the authority that is legitimately according to the US constitutional scheme," he told ANI.

Responding to Trump's terming the judgment a "terrible decision" and announcing a fresh executive order to impose a 10% global tariff under Section 122 of the Trade Act of 1974, Tewari said the standoff could reshape American constitutional politics over the next three years.

Germany said Friday it was in "close contact" with the US and wanted "stability" in trade links, after the Supreme Court ruled illegal most of President Donald Trump's tariffs on foreign trade.

The government "has noted the decision of the Supreme Court. We remain in close contact with the American government to obtain clarifications on the next steps to take to guarantee stability and predictability in commercial relations," said a government spokesman in a statement sent to AFP.

For a year, Donald Trump has governed the United States with little standing in his way. Now, as the president prepares for his State of the Union address on Tuesday, he's weighed down with Supreme Court reversals on tariffs, souring public opinion on his immigration crackdown and mounting economic concerns.

Trump is unlikely to back down in his speech, a primetime American political institution where the president is invited by Congress to present his accomplishments and lay out his agenda.

But his boasts will have less sting on Democrats -- and world leaders -- who have up to this point been bulldozed by his agenda.

On Friday, the Supreme Court delivered a sharp rebuke of his use of tariffs, which he slapped on countries often arbitrarily via a simple order on social media in an effort to gain leverage over diplomatic matters sometimes wholly unrelated to trade.

The same day, the government data showed the US economy expanded at a 1.4 percent annual rate in the October to December period -- significantly below the 2.5 percent pace that analysts had forecasted for the quarter.

Polls meanwhile show growing dissatisfaction with the cost of living as well as Trump's crackdown on undocumented immigrants

The US Supreme Court had dealt a big blow to President Donald Trump's administration by scrapping his sweeping emergency tariffs -- a move that could potentially redirect the course of the administration's economic and foreign policy agenda.

The son of Indian immigrants who once served as America's top courtroom advocate has emerged as the face of a landmark Supreme Court judgment that overthrew Donald Trump's sweeping tariffs. Neal Katyal, the son of Indian immigrants and the former Acting Solicitor General of the United States under President Barack Obama, argued the consequential tariff case on behalf of small businesses and won.

Neal Katyal, the Indian-origin lawyer who argued before the US Supreme Court about the illegality of the Trump levies, has said that he has the "best legal team in the world".

"I have the best legal team in the world. Brilliant lawyers & the kindest of souls. #lucky," he posted on X after the Supreme Court struck down Trump's tariffs.

Governor JB Pritzker sent Donald Trump an invoice Friday demanding nearly $9 billion in tariff refunds for Illinois families after the US Supreme Court ruled the president's much-touted levies are illegal.

Pritzker urged the White House to "cut the check" after justices ruled 6-3 that Trump had exceeded his authority by invoking emergency powers to impose tariffs that reshaped global trade and pushed up prices at home. 

"Your tariff taxes wreaked havoc on farmers, enraged our allies and sent grocery prices through the roof," the Democrat wrote, warning further legal action could follow if compensation was not forthcoming.

In the letter, shared with US media, Pritzker demanded about $1,700 for every Illinois household -- the amount Yale University experts said the average US household would pay on tariffs last year.

Pritzker wasn't alone in seeking payback -- both political and literal -- for widespread consumer woes. 

Earlier Friday, California Governor Gavin Newsom said the money Trump's tariffs had raised came from US voters' pockets -- and should be refunded.

"Time to pay the piper, Donald. These tariffs were nothing more than an illegal cash grab that drove up prices and hurt working families, so you could wreck longstanding alliances and extort them," he said.

"Every dollar unlawfully taken must be refunded immediately -- with interest. Cough up!"

Following the US Supreme Court's verdict quashing the tariffs imposed by President Donald Trump, Shiv Sena UBT MP Priyanka Chaturvedi on Saturday questioned why India rushed into an interim trade deal instead of waiting for the apex court's decision.

In a post on X, she noted that while the trade now attracts a 10% tariff following the court intervention, US imports to India continue at 0%. She also praised Brazil for maintaining its trade sovereignty despite being among the highest-tariffed nations. Chaturvedi described the US court's ruling as a vindication.

"Wonder why India rushed into a deal, giving up on energy purchase decisions, giving up on farmers interests rather than waiting for the US Supreme Court verdict? The trade is at 10% tariff now after the court intervention but again US imports to India at 0% Well done Brazil for standing tall despite being amongst the highest tariffed nation, the country did not buckle and trade with its sovereignty. The US court decision is a vindication," Priyanka Chaturvedi said.

In another post, referring to a report, Chaturvedi criticised government's stance on the purchase of Russian oil.

"After the US Court intervention, China like the rest of the world is at 10-% tariff but hasn't signed up its rights to purchasing Russian oil so it's lapping up the cheap oil with no consequences. While India, too will be at 10% tariff but no leverage to buy the oil.. because we signed that away for a 'Historic 18% tariff' The genius of India's Trade Minister!" she said.

Businesses face a new wave of uncertainty after the Supreme Court struck down tariffs imposed by President Donald Trump under an emergency powers law and Trump vowed to work around the ruling to keep his tariffs in place. The Trump administration says its tariffs help boost American manufacturers and reduce the trade gap. But many U.S. businesses have had to raise prices and adjust in other ways to offset higher costs spurred by the tariffs.

It remains to be seen how much relief businesses and consumers will actually get from Friday's ruling. Within hours of the court's decision, Trump pledged to use a different law to impose a 10% tariff on all imports that would last 150 days, and to explore other ways to impose additional tariffs on countries he says engage in unfair trade practices.

“Any boost to the economy from lowering tariffs in the near-term is likely to be partly offset by a prolonged period of uncertainty,” said Michael Pearce, an economist at Oxford Economics. “With the administration likely to rebuild tariffs through other, more durable, means, the overall tariffs rate may yet end up settling close to current levels.”

Efforts to claw back the estimated $133 billion to $175 billion of previously collected tariffs now deemed illegal are bound to be complicated, and will likely favor larger companies with more resources. Consumers hoping for a refund are unlikely to be compensated.

With Trump’s unyielding position on tariffs, many business are braced for years of court battles.

The Trump administration in court arguments said companies would receive refunds if the tariffs were deemed unlawful. But the ruling did not address the issue. Trump said he expected years of litigation on whether to provide refunds. Justice Brett Kavanaugh, the one Trump nominee to side with him, noted the refund process could be a "mess."

The University of Pennsylvania's Penn Wharton Budget Model projected that the court decision on tariffs would generate up to $175 billion in refunds.

California Governor Gavin Newsom, who is widely expected to seek the Democratic presidential nomination in 2028, said Americans deserved refunds from the "illegal cash grab."

"Every dollar unlawfully taken must be refunded immediately -- with interest. Cough up!"

But Elizabeth Warren, the top Democrat on the Senate Banking Committee, cautioned that there remained "no legal mechanism for consumers and many small businesses to recoup the money they have already paid."

The Supreme Court Ruling

Earlier Friday, the conservative-majority high court ruled six to three that a 1977 law Trump has relied on to slap sudden rates on individual countries, upending global trade, "does not authorise the President to impose tariffs." Trump, who had nominated two of the justices who repudiated him, responded furiously, alleging without evidence that the court was influenced by foreign interests.

"I'm ashamed of certain members of the court, absolutely ashamed, for not having the courage to do what's right for our country," Trump told reporters.

"In order to protect our country, a president can actually charge more tariffs than I was charging in the past," Trump said, insisting that the ruling left him "more powerful."

Treasury Secretary Scott Bessent, addressing the Economic Club of Dallas, said the alternative method "will result in virtually unchanged tariff revenue in 2026."

The ruling did not impact sector-specific duties Trump separately imposed on steel, aluminium and various other goods. Government probes still underway could lead to additional sectoral tariffs. Still, it marked Trump's biggest defeat at the Supreme Court since returning to the White House 13 months ago. The court has generally expanded his power.

The justices ruled Friday that "had Congress intended to convey the distinct and extraordinary power to impose tariffs" through the 1977 law, the International Emergency Economic Powers Act, "it would have done so expressly, as it consistently has in other tariff statutes."

"IEEPA contains no reference to tariffs or duties," Chief Justice John Roberts said in his opinion.

The White House said that US trading partners, like India, that reached tariff deals with the United States after Trump's tariff diktat will now also face a 10 per cent duty, despite the higher levels they may have agreed on previously.

But a White House official told news agency AFP that the Trump administration would seek ways to "implement more appropriate or pre-negotiated tariff rates" down the line.

The United States and India earlier this month announced they reached a framework for an interim agreement on trade after Trump issued an executive order removing the 25 per cent punitive tariffs imposed on India for its purchases of Russian oil and reduced the reciprocal duties on New Delhi from 25 per cent to 18 per cent.

Canada, which has faced repeated tariff threats as Trump questioned the sovereignty of the northern neighbor, said the Supreme Court showed the levies were "unjustified," but the country braced for more turbulence.

"Canada should prepare for new, blunter mechanisms to be used to reassert trade pressure, potentially with broader and more disruptive effects," said Candace Laing, president of the Canadian Chamber of Commerce.

US trading partners, including India, that have reached tariff deals with Donald Trump's administration before the Supreme Court verdict, will now face a 10 per cent duty, despite higher levels they may have agreed on previously, the White House said

US President Donald Trump has mounted a forceful and combative defence of his trade agenda after the Supreme Court curtailed his use of a key tariff authority, accusing unnamed "foreign interests" of influencing the justices, announcing a new 10 per cent global tariff and signalling that even steeper trade measures -- including embargoes -- could follow.

Speaking at a White House news conference on Friday afternoon that blended grievance, policy, and political activism, Trump called the apex court's judgment "deeply disappointing" and said he was "ashamed of certain members of the court for not having the courage to do what's right for our country".

He singled out Justices Clarence Thomas, Samuel A. Alito Jr., and Brett M. Kavanaugh for praise, saying they showed "strength and wisdom and love of our country", while sharply criticising the majority.

Of the two justices Trump had appointed who ruled against him, he said the court decision was "an embarrassment to their families", though the US President declined to say whether he regretted nominating them.

The apex court's ruling struck down the current US President's use of a specific emergency economic authority to impose tariffs, but Trump insisted that the court decision did not undercut his broader trade programme. "The Supreme Court did not overrule tariffs," the US President said.

"They merely over... a particular use of International Emergency Economic Powers Act (IEEPA) tariffs."

Donald Trump lashed out at the Supreme Court for striking down much of his sweeping tariffs, saying he was "ashamed" and called the ruling "deeply disappointing".

The India-US trade "deal is on," said Donald Trump, even as the United States Supreme Court ruled that the American president's sweeping emergency tariffs are illegal.

US President Donald Trump said on social media that he has signed an order imposing 10 percent global tariffs in response to the US Supreme Court ruling against the tariffs.
"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," Trump wrote on Truth Social.

Trump used an expansive and combative news conference to respond to a Supreme Court judgment that curtailed his use of a key tariff authority, turning what might have been a defensive moment into an aggressive reaffirmation of his trade doctrine.

US President Donald Trump has accused the Supreme Court of being "swayed by foreign interests", suggested tariffs could be raised beyond current levels, and warned that he has the power to embargo countries altogether after a court judgment curbed his use of a particular tariff authority.
At a combative White House news conference on Friday afternoon, Trump said: "It's my opinion that the court has been swayed by foreign interests and a political movement that is far smaller than people would ever think."
Pressed on whether he had evidence of foreign influence over the Supreme Court judges, the US President responded: "You're going to find out what?"
He alleged that "foreign interests are represented by people that I believe have undue influence" and said, "They have a lot of influence over the Supreme Court, whether it's through fear or respect or friendships, I don't know."

The Supreme Court dealt President Donald Trump a bruising loss on a cornerstone of his economic policy, striking down sweeping tariffs he imposed on nearly every country.

Germany said Friday it was in "close contact" with the US and wanted "stability" in trade links, after the Supreme Court ruled illegal most of President Donald Trump's tariffs on foreign trade.
The government "has noted the decision of the Supreme Court. We remain in close contact with the American government to obtain clarifications on the next steps to take to guarantee stability and predictability in commercial relations," said a government spokesman in a statement sent to AFP.

US President Donald Trump said Friday it may take years to resolve the legal issue of whether some $133 billion taken in from his tariffs must be refunded.

"Today I will sign an order to impose a 10% global tariff under Section 122, over and above our normal tariffs already being charged and we're also initiating several Section 301 and other investigations to protect our country from unfair trading practices of other countries and companies," US President Donald Trump said.

Trump said of the tariffs that "other alternatives will now be used to replace the ones that the court incorrectly rejected."

"We have alternatives," Trump said, "could be more money. We'll take in more money and and we'll be a lot stronger for it."

"Ashamed of certain members of the court": Trump slams "disappointing" ruling on tariffs.

US President Donald Trump said that he was "deeply disappointed" by Supreme Court's ruling. 

Donald Trump is due to hold a press briefing in what will be his first public remarks since the supreme court ruled against the legality of his sweeping global tariffs.

In a major setback for US President Donald Trump, the Supreme Court on Friday struck down sweeping tariffs imposed by his administration, ruling that the president had exceeded his authority by using emergency powers meant for national crises.

Senate Majority Leader Chuck Schumer praised the Supreme Court's rejection of the administration's global tariffs as a significant win for American consumers' finances. He characterised the "chaotic and illegal" tariff policy as a hidden tax that destabilized the economy and increased the cost of living. Schumer highlighted the strain placed on farmers and small businesses and urged President Trump to permanently abandon the "reckless trade war" to provide long-awaited relief to families.

Trump Tariffs: The US Supreme Court today struck down President Donald Trump's far-reaching global tariffs, handing him a major setback.

In 6–3 ruling, Chief Justice Roberts led a majority that included the court's three liberal members, Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson, alongside two conservative Trump appointees, Neil Gorsuch and Amy Coney Barrett.

Clarence Thomas, Samuel Alito, and Brett Kavanaugh were the three dissenting Justices.

As of December 14, US government has collected around $134 billion in revenue from the tariffs, according to United States Customs and Border Protection data, Supreme Court did not clarify what to do with the money the administration has already collected through Trump’s tariffs.

Supreme Court ruling affirms Trump tariffs 'unjustified': Canada

The EU said Friday that it was studying the US Supreme Court ruling that found President Donald Trump exceeded his authority in imposing a swath of tariffs that upended global trade.

"We take note of the ruling... and are analysing it carefully," EU trade spokesman Olof Gill said.

"We remain in close contact with the US Administration as we seek clarity on the steps they intend to take in response to this ruling," he added. "Businesses on both sides of the Atlantic depend on stability and predictability in the trading relationship".

US stocks are drifting higher Friday in a relatively muted reaction after the Supreme Court struck down President Donald Trump’s sweeping tariffs, which had thrown financial markets into panic when announced last year.

The S&P 500 rose 0.3%. It had been flipping between small gains and losses earlier in the morning following discouraging reports showing slowing growth for the U.S. economy and faster inflation.

The Dow Jones Industrial Average was up 116 points, or 0.2%, as of 10:30 a.m. Eastern time, and the Nasdaq composite was 0.5% higher.

In a major setback for President Donald Trump, the US Supreme Court has ruled that he overstepped his legal authority by imposing sweeping tariffs on virtually all US trading partners using emergency economic powers.

"The United States, after all, is not at war with every nation in the world," US Chief Justice said.

In the court’s ruling today, chief justice John Roberts wrote, "When Congress has delegated its tariff powers, it has done so in explicit terms and subject to strict limits. Against that backdrop of clear and limited delegations, the Government reads IEEPA to give the President power to unilaterally impose unbounded tariffs and change them at will. That view would represent a transformative expansion of the President’s authority over tariff policy."

In a major blow to US President Donald Trump, the Supreme Court struck down tariffs on Friday. The court ruled that Trump exceeded his authority when he imposed sweeping tariffs.