In a surprise move, former President Donald Trump has responded to the Supreme Court's landmark ruling against his sweeping tariff powers by signing an executive order imposing a new 10% global tariff under a different legal authority. This latest development is sending shockwaves through the financial markets and reigniting the long-running debate over the limits of presidential trade policy.

Supreme Court Slams the Brakes on Trump's Tariff Agenda

Just a day after the Supreme Court dealt a stinging 6-3 defeat to Trump's tariff regime, the former president is striking back. In a press conference earlier today, Trump lambasted the court's decision as "deeply disappointing" and "very unpatriotic." He then announced that he had signed an order enacting a temporary 10% tariff on all imported goods under Section 301 of the Trade Act of 1974, a different legal authority than the one the court ruled against.

A Messy Aftermath Looms

The Supreme Court's ruling did not affect all of Trump's tariffs, but it did invalidate those implemented using the International Emergency Economic Powers Act (IEEPA) - a law intended for national security emergencies, not trade disputes. This opens the door for businesses to demand refunds on over $175 billion in tariff payments, according to estimates from the Penn-Wharton Budget Model.

The legal and economic fallout from this ruling is likely to be significant. As dissenting Justice Brett Kavanaugh noted, the decision could create a "mess" for the government, requiring a complex process to sort out tariff refunds. Meanwhile, Trump's new tariff order sets the stage for further legal challenges and market volatility.

The Bigger Picture: Enduring Tensions Over Trade Policy

At the heart of this saga lies the longstanding tug-of-war over the president's trade authority. While the Supreme Court has now curbed Trump's most expansive tariff powers, the broader debate over the executive branch's role in shaping trade policy is far from over. As NBC News reports, some Republican lawmakers have already pledged to help Trump re-establish his tariffs through legislative means.

The fallout from this ruling will likely reverberate for years to come, shaping not just the economic landscape, but also the balance of power between the White House and Congress on trade matters. For investors and businesses navigating this uncertain terrain, staying informed and agile will be crucial in the months and years ahead.