Trump calls US Supreme Court's tariff ruling ‘a disgrace,’ says ‘backup plan’ ready: Report

Donald Trump on Friday called the United States Supreme Court’s decision striking down his global tariffs “a disgrace” and told governors he has a backup plan to reinstate the measures, reported CNN, citing people familiar with his remarks.

Speaking during a working breakfast with governors at the White House, Trump reacted angrily to the ruling and said alternative options were already under consideration. He told those gathered that he has a backup plan in mind, according to the report.

Officials inside the Trump administration had been bracing for a potential loss at the United States Supreme Court and had assured the president that if the justices struck down his tariffs, there would be other ways to implement them, the CNN report added.


Tariffs, tensions, truces: From 'Liberation Day' shock to courtroom knockdown — the full Trump trade war timeline

Tariff setback: Trump suffers a major blow

Earlier in the day, the Supreme Court ruled 6–3 against Trump’s sweeping global tariffs imposed under the International Emergency Economic Powers Act, holding that he had overstepped his authority by invoking a law meant for national emergencies to justify broad import duties.

The ruling marked a major judicial rebuke of one of the most aggressive assertions of executive power in Trump’s second term and carries broad consequences for US trade policy and the global economy.

The tariffs had been challenged in three separate lawsuits by five small importing businesses and 12 Democratic-leaning states — Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, Oregon and Vermont — after lower courts concluded that Trump had overstepped powers delegated by Congress. In a related case, a federal judge sided with family-owned toy company Learning Resources.

Under the US Constitution, Congress has the authority to impose taxes and tariffs. While previous presidents have used the 1977 law primarily to sanction foreign adversaries or freeze assets, Trump became the first to use it to impose broad-based tariffs. The statute does not explicitly reference tariffs, though the administration argued it permits the president to “regulate” imports during a declared emergency.

Also read: US Supreme Court rules against Trump’s global tariffs imposed under emergency law

'Liberation day' to 'reciprocal': Trump's tariff wrath

Trump had relied heavily on tariffs as a central economic and foreign policy tool, launching a far-reaching trade offensive after returning to office. On April 2, 2025 -- which he dubbed “Liberation Day” -- he announced sweeping “reciprocal” tariffs on imports from most US trading partners, declaring long-running trade deficits a national emergency. In February and March 2025, he similarly invoked IEEPA to impose tariffs on China, Canada and Mexico, citing fentanyl and illicit drug trafficking.

The measures unsettled financial markets, strained ties with allies and triggered legal opposition that crossed ideological lines, including from pro-business and libertarian groups. Economists at the Congressional Budget Office have estimated that if all current tariffs were maintained, they could generate roughly $300 billion annually over the next decade, with cumulative economic effects running into trillions of dollars. Treasury data showed net customs duty receipts reached a record $195 billion in fiscal 2025.

Although the Supreme Court’s decision invalidates tariffs imposed under IEEPA, it does not bar the administration from turning to other trade statutes. Officials, including Treasury Secretary Scott Bessent, have indicated they would explore alternative legal authorities, though these may offer less speed and flexibility than the emergency powers law Trump relied upon.

Trump had previously described any adverse ruling as a “terrible blow” and has consistently defended the tariffs as essential to US economic strength.