Trump orders 10 per cent global tariff after Supreme Court finds previous ones were illegal

Washington: Donald Trump has ordered a temporary, global 10 per cent tariff on imports to the United States after the Supreme Court ruled his earlier round of sweeping import duties was illegal, upending the president’s signature economic initiative and opening the door to billions of dollars in refunds.

This time, rather than relying on emergency powers to justify permanent tariffs, Trump used a trade law that allows him to impose the levies for up to 150 days to address a trade deficit - after which, it would have to be extended by Congress.

He also directed the United States Trade Representative to formally investigate “unreasonable” trade practices with a view to imposing additional sectoral tariffs such as those on steel and aluminium.

Trump signed the proclamation on Friday evening (Washington time), hours after the nation’s highest court ruled his signature “reciprocal tariffs”, announced on “Liberation Day” last April, were unlawful.

The 6-3 majority ruling found Trump exceeded his powers as president. The framers of the US Constitution gave “Congress alone” the power to impose tariffs during peacetime, the majority found.

Trump called a snap news conference where he branded the decision “totally defective”, “terrible” and “deeply disappointing”. He claimed the court had been “swayed by foreign interests”, without explaining what he meant by that.

“It’s a ridiculous decision,” he said. “Foreign countries that have been ripping us off for years are ecstatic. They’re dancing in the streets – but they won’t be dancing for long, I can assure you.”

The court’s ruling pertained only to the so-called “reciprocal tariffs” Trump levied using his emergency powers. Other tariffs he has imposed, such as sectoral tariffs on steel and aluminium, are unaffected.

Trump flagged he would immediately impose a 10 per cent global tariff using Section 122 of the Trade Act of 1974, and begin trade practices investigations with a view to imposing other sectoral tariffs.

“We have other ways, numerous other ways,” the president said. “It takes a little more time, but the end result is it’s going to get us more money.”

Trump personally criticised the Supreme Court justices who struck down the tariffs - particularly those he appointed in his first term, Neil Gorsuch and Amy Coney Barrett, saying he was “ashamed” of them.

“I think it’s an embarrassment to their families, the two of them,” he said. Meanwhile, the three justices who ruled to uphold the tariffs showed “great strength and wisdom” - particularly his appointee Brett Kavanaugh, whose dissenting opinion Trump repeatedly cited.

The Supreme Court decision to strike down Trump’s central economic policy is the biggest blow to his authority to date. It represents a rare curb on presidential power from the nation’s highest court.

The ruling also sets up potential legal action to reclaim billions of dollars in tariff refunds. Treasury Secretary Scott Bessent said the additional tariffs had raised about $US175 billion ($247 billion) to date.

Neil Bradley, executive vice president of the US Chamber of Commerce, welcomed the court’s decision and called for “swift refunds of the impermissible tariffs” which he said would deliver meaningful financial relief for more than 200,000 small business importers in the US.

But Trump made no such commitment during his press conference. Instead, he slammed the Supreme Court for not issuing an order about refunds, and predicted the matter would be litigated. “We’ll end up being in court for the next five years,” he said.

Democrats called on Trump to return the money to American consumers. “Donald Trump illegally stole your money. He should give it back to you,” Democratic senator Elizabeth Warren said on X. “Instead Trump is scheming up new ways to force Americans to pay even more.”

Asked what would happen to the trade deals he struck with various countries as part of tariff negotiations, Trump said many would remain in place. “Some of them won’t, and they’ll be replaced by other tariffs.”

Bessent said the court’s decision clarified that Trump retained the power to impose a complete embargo on trade from any country or a line of products. “He can just cut countries off … so, I would call on all countries to honour their agreements and move forward,” he told Fox News.

In a Truth Social post last month, Trump asserted it would take years to figure out how to repay the tariffs if the court found they were unlawful. He said countries and companies would demand “payback” for investments they were making in the US to avoid his tariffs.

“When these Investments are added, we are talking about Trillions of Dollars! It would be a complete mess, and almost impossible for our Country to pay,” he said at the time.

The new 10 per cent tariff announced Friday night means most countries now receive the same tariff rate that Australian exports to the US received from the start. The Australian government continues to oppose the tariffs, which Prime Minister Anthony Albanese has called “not the act of a friend”.

Australia’s Trade Minister Don Farrell said the government was assessing the situation. “We have consistently advocated against these unjustified tariffs,” he said. “We are working closely with our embassy in Washington to assess the implications and examine all options.”

The proclamation signed by Trump includes exemptions for certain critical minerals, beef, tomatoes, oranges, pharmaceuticals and certain electronics, as well as goods that comply with the US-Canada-Mexico free trade agreement.

A fact sheet released by the White House did not say what would happen once the tariffs expire in 150 days. But House of Representatives Mike Johnson flagged a role for Congress in assisting the president to make his tariff agenda permanent.

The tariffs brought in billions of dollars, created “immense leverage for America’s trade strategy” and led to strong trade agreements with countries that “had been taking advantage of American workers for decades”, Johnson said. “Congress and the Administration will determine the best path forward in the coming weeks.”

The Supreme Court majority opinion written by Chief Justice John Roberts said that whenever Congress had delegated its power to impose tariffs, it did so “in explicit terms, and subject to strict limits”.

While the government contended the International Emergency Economic Powers Act gave the president the power to unilaterally impose permanent tariffs and change them at will, “that view would represent a transformative expansion of the president’s authority over tariff policy,” the majority found.

“It is also telling that in [that law’s] half century of existence, no president has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope.”

In his dissent, Kavanaugh said it was nonsensical to find that the president had the power to block imports from a country but not to raise revenue with tariffs. He noted courts had upheld tariffs imposed by Richard Nixon using previous emergency laws.

“The tariffs at issue here may or may not be wise policy. But as a matter of text, history, and precedent, they are clearly lawful,” Kavanaugh found.

Trump’s tariff agenda was aimed at reducing the US’s long-standing trade deficit. But government data released on Thursday showed the deficit barely changed in 2025, coming in at $US901.5 billion ($1.28 trillion).

Bessent said the US Treasury estimated that using alternative laws to raise new tariffs would result in “virtually unchanged tariff revenue in 2026” compared to what was forecast under the tariffs that were struck down.

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