President Donald Trump is paying the price for going it alone on tariffs — with the Supreme Court giving him a rare rebuke on Friday, ruling that he lacks the authority to declare an economic emergency and impose sweeping new taxes on imported goods.
Trump has made tariffs a cornerstone of his economic pitch to midterm election voters, even describing them as his “favorite word in the dictionary.” He promised that factories would be relocated from overseas and jobs would be brought in, and he warned that removing tariffs could plunge the United States into a deep recession.
But Friday’s ruling is likely to prolong political and economic chaos in international trade throughout an election year.
Trump called the ruling “very disappointing” and “ridiculous,” adding that he was “absolutely ashamed” of the six Supreme Court justices who ruled against him because they “didn’t have the courage to do the right thing for our country.”
“They’re just fools and lapdogs from the Rino people and the radical left Democrats,” Trump said of the high court majority at an afternoon news conference, referring to “Republicans in name only.” “They are deeply unpatriotic and unfaithful to our Constitution.”
He vowed to bypass Congress and impose new tariffs on himself based on existing law. He also insisted the High Court ruling brought “tremendous certainty” to the economy.
This is far from certain.
The president acknowledged that some recently negotiated trade deals will remain in place, while others will not. He also predicted years of legal wrangling to determine whether his administration must refund billions of dollars in tariff revenue that other countries have paid.
Trump learned of the decision after receiving a note during a private meeting with several governors in the morning, according to two people briefed on the president’s reaction who spoke on condition of anonymity. Trump said he had to “do something about these courts,” according to another person briefed on the conversation.
The meeting with the governor ended shortly after Trump learned of the decision.
Tariffs are politically unpopular
Republican strategist Doug Heyer said it was clear the president “wouldn’t be happy” with the decision.
“We started hearing that this was a huge hit, a massive denial,” he said.
However, Haye said Trump would try to find another way to pursue his trade agenda.
“Can they figure out how to take advantage of this opportunity?” he asked. “There are so many questions.”
The White House plans to use alternative laws to maintain the tariffs, but these policies will only prolong the debate and perpetuate an issue that is largely unpopular with voters.
About 6 in 10 Americans said Trump went too far in imposing new tariffs on other countries, according to an Associated Press-NORC poll in January.
Even more worrying for a president who was elected on a promise to address Americans’ concerns about affordability, 76% said in a poll last April that Trump’s tariffs would increase the cost of U.S. consumer goods
Trump uses tariffs to reshape Republican trade agenda
Trump’s aggressive use of tariffs has upset many Republican lawmakers publicly and privately, forcing them to defend policies that essentially raise taxes on the American public and businesses.
At different points in Trump’s second term, at least seven senators from the president’s own party expressed their concerns. Earlier this month, six House Republicans joined Democrats in voting for a resolution opposing Trump’s tariffs on Canada.
In fact, before Trump came to power, free trade had long been a core pillar of the Republican Party.
In a statement praising the Supreme Court’s ruling, Kentucky Sen. Mitch McConnell described Trump’s assertion that he could bypass Congress and impose tariffs as “unlawful.”
“As I have warned repeatedly, Congress’ role in trade policy is not a nuisance to avoid,” the former Senate Republican said. “If the executive branch wants to enact trade policy that affects American producers and consumers, the path forward is clear: convince their representatives under Article I of the Constitution.”
Former Vice President Mike Pence, who served during Trump’s first term, hailed the ruling as a victory for the public, the separation of powers and free trade enshrined in the Constitution.
“American families and American businesses pay U.S. tariffs, not foreign countries,” Pence wrote on social media. “With this decision, American families and businesses can breathe a sigh of relief.”
Democrats were quick to seize the opportunity given to them by the Supreme Court, with Rep. Suzan DelBene, D-Wash., saying Trump was “not a king” and his “tariffs are always illegal.”
“Republicans in Congress could have easily ended this economic crisis by defending their communities,” said DelBene, chairman of the Democratic Congressional Campaign Committee. “Instead, they have chosen to cave to Trump while families, small businesses and farmers suffer from higher prices.”
Tariffs are central to Trump’s economic propaganda
The ruling essentially allows Trump’s critics to say he broke the law and middle-class families suffered as a result.
But Trump claims his tariffs are the difference between the country’s prosperity and deep poverty, a pitch he made to voters in the swing state of Georgia on Thursday night.
The president used the word “tariffs” 28 times in a speech Thursday at Coosa Steel Co. in Georgia, which argued that import taxes make its products more competitive with those from China.
“Without tariffs, this country would be in trouble right now,” Trump charged.
Trump also complained that he would have to justify his use of tariffs to the Supreme Court.
“I have to wait for this decision. I’ve been waiting, forever, and the language is clear that I have the authority as president to do that,” he said. “For national security purposes, I have the authority to impose tariffs on countries that have been shortchanging us for years.”
The high court voted 6-3 to overturn the decision.
The math on Trump’s tariffs doesn’t add up
The president has consistently misrepresented his tariffs, claiming, despite evidence to the contrary, that foreign governments will pay them and the revenue will be enough to pay down the national debt and provide dividend checks to taxpayers.
new research Tariffs paid by mid-sized U.S. companies have tripled in the past year, a leading U.S. bank found on Thursday.
The extra taxes mean companies that employ 48 million people in the United States — the type of businesses Trump has promised to revive — must find ways to absorb them. new expensespassing this on to customers in the form of higher prices, hiring fewer workers, or accepting lower profits.
Trump’s tariffs – not all of which have been overturned – are expected to generate $3 trillion in revenue over 10 years, according to the Congressional Budget Office. While this amount is large, it is not enough to cover the cost of the projected deficit.
The Supreme Court has yet to rule on how the refund process will work.
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Associated Press writer Steven Sloan contributed to this report.