UPDATE: Trump raises substitute tariff to 15% and threatens lengthy court battles over $133 billion in refunds after Supreme Court struck down his sweeping global levies, creating chaos for businesses and trading partners worldwide.
The Supreme Court struck down President Trump's sweeping global tariffs Friday in a 6-3 decision, ruling he exceeded his authority under emergency powers law. Within hours, Trump announced new tariffs under different legal authority—first 10%, then raising it to 15% on Saturday. The president said he was 'absolutely ashamed' of justices who ruled against him and warned refund battles could last 'five years.'
U.S. Customs has already collected $133 billion under the now-invalid tariffs, but the refund process remains unclear. The Supreme Court's opinion didn't address how refunds would work, with Justice Brett Kavanaugh warning it would be a 'mess.' Trade lawyers say importers will likely get money back eventually, but consumers who paid higher prices probably won't. The process could take 12 to 18 months and will favor larger companies with more resources.
The ruling complicates U.S.-China relations ahead of Trump's planned March visit to Beijing, though analysts say China will proceed cautiously. Congressional Republicans remain divided on tariffs, with Trump rescinding his endorsement of Colorado Rep. Jeff Hurd for voting against Canadian tariffs. Democrats are demanding refunds for consumers and plan to make tariff costs central to midterm campaigns. Businesses face continued uncertainty as Trump pursues alternative legal paths for imposing duties.
Editor’s rationale — Supreme Court ruling constitutes major institutional change by invalidating presidential emergency powers use and striking down $133B in tariffs, with nationwide economic implications and multi-year legal/administrative consequences. Primary source reporting from official court decision and direct quotes from trade lawyers and Trump. Durability extends across months of refund litigation and economic stimulus debate.