Trump Doubles Down on Tariff Threats After Supreme Court Setback

When 64% of Americans oppose your policy, most politicians would reconsider. Donald Trump isn't most politicians. Just days after the US Supreme Court ruled his sweeping global tariffs unlawful, the president has doubled down with even stronger threats.

Defying the Court's 6-3 Ruling

Last Friday's Supreme Court decision struck down Trump's comprehensive tariff program imposed under the International Emergency Economic Powers Act. The 6-3 ruling should have been a clear signal to retreat. Instead, Trump took to Truth Social on Monday with a warning: any countries wanting to "play games" after the court's decision would face "much higher tariffs."

In a separate post, Trump claimed he doesn't need Congressional approval for tariffs, calling the Supreme Court decision "ridiculous and poorly crafted." While Trump does retain some tariff authority, it's far more limited than his sweeping original program.

Under Section 122 of the 1974 Trade Act, Trump announced a 10% tariff, escalating to 15% by Saturday—the maximum allowed under this statute. The provision requires only a presidential declaration and lasts 150 days unless Congress extends it.

Markets React to Policy Whiplash

The constant policy reversals are wreaking havoc on financial markets. Monday saw the tech-heavy Nasdaq drop 1.1%, the S&P 500 fall 1%, and the Dow Jones plummet 1.5%. Gold, traditionally a safe haven during uncertainty, surged 2% to a three-week high.

"What we do know is that it would continue to require all those parties affected to continue to live in uncertainty," Max Kulyk, CEO of Chicory Wealth, told Al Jazeera. "Such uncertainty is not good for our economy and has negative impacts on American consumers."

EY-Parthenon's chief economist Gregory Daco captured the business community's frustration: "You hear that tariffs are off, and you are considering how to get refunds. Then a few hours later, it's 10 percent. Then it's 15 percent the next day.... Not having that stable framework is hurtful for activity, hiring, investment."

Trade Deals in Limbo

Trump's erratic approach is freezing international trade negotiations. The European Parliament postponed its vote on a US trade deal for the second time Monday—the first delay was in protest of Trump's unsolicited Greenland acquisition attempts.

The EU had been considering removing import duties on various US goods, but committee chair Bernd Lange explained the dilemma: "The new temporary US tariff could mean increased levies for some EU exports, and no one knew what would happen after they expire in 150 days."

European lawmakers will reconvene March 4 to assess whether the US has clarified its position and reaffirmed its commitment to last year's agreement.