The U.S. Supreme Court delivered a significant blow to former President Donald Trump's trade policy yesterday, declaring most of his global tariffs unlawful under the International Emergency Economic Powers Act. The 6-3 ruling found that tariffs imposed on trading partners during Trump's presidency exceeded statutory authority.
Trump expressed sharp disapproval at a press briefing late Friday, stating he was "ashamed" of certain justices and vowing to pursue new 10% global tariffs under Section 122 of the 1974 Trade Act. "This is lawlessness from the Court, plain and simple," said Vice President JD Vance, aligning with Trump's criticism.
With $27.7 billion in tariffs collected in January 2026 alone, uncertainty looms over potential refunds. U.S. Treasury Secretary Scott Bessent indicated that alternative legal avenues could maintain "virtually unchanged" tariff revenue this year, though legal experts predict prolonged litigation over repayment obligations.
The decision comes as Asian markets monitor potential ripple effects, particularly for economies with significant export ties to the United States. Business analysts advise investors to watch for updates on the proposed Section 122 tariffs and their implementation timeline.
