Trump Hits Back With New 10% Tariff Hours After Supreme Court Strikes Down Trade Levies

In a dramatic collision between America's executive and judicial branches, President Donald Trump fired back at the US Supreme Court within hours of its landmark tariff ruling on Friday — invoking Section 122 of the Trade Act of 1974 to slap a fresh 10% tariff on countries worldwide, even as markets worldwide absorbed the shockwaves of the court's 6-3 decision.

The Supreme Court ruled that Trump's sweeping global tariffs — imposed under the International Emergency Economic Powers Act (IEEPA) — were unconstitutional, reaffirming that the power to levy taxes and tariffs rests with Congress under Article I of the US Constitution. The majority held that using executive orders to make such sweeping economic decisions violated the fundamental principle of separation of powers. Among the tariffs immediately invalidated was the 18% reciprocal tariff imposed on India.

Three hours after the ruling, the White House struck back. Citing Section 122 of the Trade Act of 1974, Trump announced a new 10% global tariff — a provision that grants the President authority to impose temporary tariffs of up to 15% for up to 150 days in cases of extraordinary trade deficit. Legal experts have widely characterised the move as a deliberate technical workaround to the court's decision.

Trump, for his part, did not hold back in his response to the ruling. He called the justices a "disgrace to the country," accused them of acting under foreign influence, and insisted that weakening his tariff regime was a blow to American industry, employment, and national security. At a press conference, he maintained that foreign nations were "dancing in the streets" as a result of the ruling — and pledged to pursue his economic agenda to the fullest extent of executive authority.

In comments responding to questions about the US-India trade deal, Trump described Prime Minister Narendra Modi as a "great man" and characterised him as a sharp negotiator — while making clear that under the current arrangement, India continues to pay tariffs to the US and not the other way around.

With the 18% reciprocal tariff now struck down but a fresh 10% levy now in effect temporarily, Indian export-dependent sectors — particularly textiles, auto components, and pharmaceuticals — face a period of renewed uncertainty during the 150-day window.

The standoff has triggered a fresh debate over the boundaries of presidential economic power in the United States. Three scenarios are now being closely watched: Congress stepping in to legislate clearer limits on executive tariff authority; the new Section 122 tariffs facing their own legal challenge in court; or a negotiated trade policy revision emerging before the 150-day deadline expires.

Asian and European markets registered initial declines following the developments, reflecting the broader anxiety gripping the global trade system as the world's largest economy navigates an increasingly volatile constitutional confrontation.