Trump Vows To Fight On With ‘Backup Plan’ After US Supreme Court Tariff Blow

Washington DC: Donald Trump, in his first response following the US Supreme Court's striking down the sweeping tariffs, has vowed to fight on, claiming that he has a ‘backup plan’. The US President pointed out that the administration would explore alternative legal justifications to retain as many of the tariffs as possible. Trump's reaction comes just minutes after the US Supreme Court ruled that the president's tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), are unlawful. 

The 6-3 decision, authored by conservative Chief Justice John Roberts, has left Trump's administration looking to find alternative justifications for the tariffs.

The tariffs, introduced in April 2025 as part of Trump's 'Liberation Day' agenda, had been touted as a key component of the president's economic policy. However, the Supreme Court's ruling has thrown the future of the tariffs into doubt, with estimates suggesting that up to $175 billion in tariff revenue could be at risk.

Meanwhile, Treasury Secretary Scott Bessent has indicated that the administration could turn to other statutory provisions, such as Section 232 of the Trade Expansion Act, which permits tariffs on imported goods that threaten US national security, or Section 301, which allows retaliatory actions against trading partners that have used unfair trade practices against American exporters.

The Supreme Court's decision is seen as a major setback for 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 had been massively criticised, with analysts stating that it exceeded the president's authority.

The ruling has sent stocks soaring, with investors welcoming the clarity on trade policy. The S&P 500 rose 0.3%, while European auto shares and US-listed shares of companies from South Korea to India rallied.

However, Trump has vowed to continue fighting for his tariffs, saying they are vital for US economic security. "The tariffs are the greatest thing to happen to this country," Trump said during a visit to Georgia. The administration is exploring alternative legal justifications to retain the tariffs, including invoking national security concerns or unfair trade practices. However, experts have suggested that these alternatives may not provide the same level of flexibility as IEEPA.

The Supreme Court's decision is expected to heavily impact global trade, with several countries awaiting clarity on the US trade policy.