Donald Trump has vowed to fight ahead in his first response since the US Supreme Court struck down major tariffs, claiming he has a ‘backup plan’. The US President said that the administration will look for other legal reasons to maintain as many tariffs as possible.
Trump’s reaction came just minutes after the US Supreme Court’s decision that the President’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are illegal.
What could be Trump’s backup plan?
The tariffs, introduced as part of Trump’s ‘Liberation Day’ agenda in April 2025, were described as an important part of the president’s economic policy. However, the Supreme Court’s decision has cast doubt on the future of the tariffs, and it is estimated that up to $175 billion of tariff revenues could be at risk.
Meanwhile, Treasury Secretary Scott Besant has indicated that the Trump administration could use other legal mechanisms, such as Section 232 of the Trade Expansion Act, which allows tariffs to be imposed on imported goods that threaten US national security, or Section 301, which allows retaliatory action against trading partners who have used unfair trade practices against US exporters.
Shares of US-listed companies rose
The Supreme Court’s decision is being considered a major blow to Trump’s trade policy, which was claimed to boost domestic manufacturing and reduce the US trade deficit. The Administration’s use of IEEPA to impose tariffs was widely criticized, with analysts saying it exceeded the President’s authority.
The decision sent stocks higher, and investors welcomed the clarity on trade policy. The S&P 500 rose 0.3%, while European auto shares and shares of US-listed companies from South Korea to India rose.