Trump Defies Supreme Court, Hikes Tariffs to 15% Amid Legal Chaos

$133 billion. That's how much the U.S. Treasury collected from Trump's tariffs through December. Now, it might all have to be paid back. The Supreme Court just ruled Trump's unilateral tariff regime unconstitutional—and the president's response? Double down.

On Saturday, Trump raised his global tariffs from 10% to 15%, the maximum allowed under a different law he's now invoking. It's a direct challenge to the nation's highest court and a preview of the constitutional showdown ahead.

When the Supreme Court Says No

Friday's 6-3 Supreme Court decision was unambiguous: Congress holds the power to tax, not the president. Trump had been using the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on nearly every country. The court said that crossed a constitutional line.

Trump's reaction was swift and furious. He called the majority justices "fools and lapdogs" and an "embarrassment to their families." Within hours, he signed a new executive order using Section 122 of the Trade Act of 1974—a statute no president has ever invoked before.

The catch? These tariffs expire in 150 days unless Congress extends them. It's a legislative time bomb ticking toward November's midterm elections.

The Great Refund Rush

The Supreme Court ruling triggered an immediate stampede to federal courthouses. Over 1,000 lawsuits have already been filed by importers seeking refunds, with more coming daily.

"It's pretty clear they will win in court, but it'll take some time," said John Diamond, director of the Center for Tax and Budget Policy at Rice University. Large corporations have the legal firepower to navigate the refund process, but smaller firms face a much steeper climb.

The math is staggering. If successful, these lawsuits could force the Treasury to return the entire $133 billion collected—money that's already been spent on government operations.

Trade Deal Chaos: Winners and Losers

Trump's tariff hike has thrown existing trade agreements into confusion. The administration had negotiated different rates with various countries, creating a complex web of bilateral deals.

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Trade Representative Jamieson Greer insists existing agreements remain valid, meaning some countries will pay higher rates than the universal 15%. It's a peculiar situation where having a trade deal with America might actually be worse than not having one.

Political Reckoning Ahead

With 57% of Americans disapproving of Trump's economic handling according to Reuters/Ipsos polling, the tariff controversy couldn't come at a worse time politically. Democrats need to flip just three Republican seats in the House to regain control.

"A little over 24 hours after his tariffs were ruled illegal, he's doing anything he can to make sure he can still jack up your costs," House Democrats fired back on social media. California Governor Gavin Newsom was more direct: "He does not care about you."

The irony isn't lost on critics. Trump campaigned on reducing costs for American families, yet tariffs—which are ultimately paid by importers and passed to consumers—have the opposite effect.

International Bewilderment

Foreign governments are watching this constitutional crisis with a mixture of confusion and concern. German Chancellor Friedrich Merz is coordinating a joint European response ahead of March talks with Trump. Hong Kong's financial secretary called the situation a "fiasco."

The damage to America's trade credibility may outlast any single policy. If the U.S. can't honor agreements for 150 days, why negotiate with Washington at all?

The clock is ticking. The lawsuits are mounting. And somewhere in the middle, ordinary Americans are paying the price—literally.