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Trump Signals Plan B as Supreme Court Weighs Tariff Authority

The Supreme Court has yet to rule after signaling doubts about using emergency powers for tariffs.

Overview

  • President Trump said his administration will "do something else" if the Supreme Court does not uphold his tariff strategy, without detailing alternatives.
  • A ruling in the IEEPA tariffs case is still pending, with justices previously expressing skepticism during oral arguments and a decision not expected until at least February.
  • The administration has recently announced or threatened new measures, including a 25% tariff on countries doing business with Iran and a 200% tariff threat on French wine and champagne.
  • Trump also set tariffs on European NATO exports to the U.S. at 10% starting February 1, rising to 25% on June 1, unless a deal is reached to sell Greenland to the United States.
  • Lower courts have rejected a broad reading of the IEEPA, which does not explicitly authorize tariffs, heightening legal, commercial, and diplomatic uncertainty as businesses and allies watch for the Court’s decision.