Stocks Whipsaw as Court Strikes Down Trump Tariffs

tocks whipsawed while bonds fell alongside the dollar after the Supreme Court’s rejection of Donald Trump’s tariffs. Crypto, gold and oil mostly hovered as traders sought to assess the president’s plans for a program that sent markets careening when first announced last year. Bloomberg's Tom Keene joins to discuss on Balance of Power. Trump opened his remarks by delivering a broadside against the Supreme Court, saying he was “ashamed of certain members” and that some of the justices were “frankly a disgrace to our nation.”

The court ruled 6-3 that Trump had exceeded his authority by invoking a federal emergency-powers law to impose his so-called “reciprocal” tariffs across the globe, as well as targeted import taxes the administration has said address fentanyl trafficking. Two justices appointed by Trump in his first term — Neil Gorsuch and Amy Coney Barrett — joined the majority in striking down the tariffs.

The justices didn’t address the extent to which importers are entitled to refunds, leaving it to a lower court to sort out those issues. If fully allowed, refunds could total as much as $170 billion — more than half the total revenue Trump’s tariffs have brought in.

The decision invalidates Trump’s April 2 tariffs, which imposed levies of 10-50% on imports from most countries. It also scuttles duties on goods from Canada, Mexico and China in the name of addressing fentanyl trafficking, and it casts doubt on separate IEEPA tariffs placed on goods from Brazil and India.

Trump repeatedly voiced frustration throughout his remarks to the media. Even the usual bright lights of the James S. Brady Press Briefing Room were dimmed and colored for dramatic effect.

He contended that the court’s decision didn’t make sense because he had the power to fully embargo trade from a country — but not tariff its goods. He said he was irked that the ruling would allow him to issue licenses but not impose related fees. And he at times attacked the justices on remarkably personal terms, saying the decision by Gorsuch and Barrett was “an embarrassment to their families.”

“They’re very unpatriotic and disloyal to our Constitution,” Trump said, suggesting the justices may have been swayed by foreign interests.

Read more: Trump’s Options After Supreme Court Said His Tariffs Are Illegal

The court’s decision not to dictate how the tariffs would be refunded also earned Trump’s ire. “We’ll end up being in court for the next five years,” the president said.

The president argued that his tariff program is essential not only to draw manufacturing back to the US, but as a foreign policy tool. He said tariff threats have helped him to pressure countries to deescalate armed conflicts and credited negotiations over levies for attracting billions of dollars in planned foreign investments in the US.

“Foreign countries that have been ripping us off for years are ecstatic. They’re so happy, and they’re dancing in the streets — but they won’t be dancing for long,” Trump said.

Trump said he would continue to pursue trade negotiations, using the looming tariffs as leverage with trading partners, and that he expected existing deals to remain in place — albeit some after being reworked.

The president also said his team had already had spoken to some representatives from foreign governments — including Canada and Vietnam — who expressed concern that the case could result in a higher tariff rate.

“All we’re doing is we’re going through a little bit more complicated process, not complicated very much, but a little more complicated than what we had,” Trump said. “We’ll be able to take in tariffs, more tariffs.”

The ruling ratchets up the drama for Tuesday night’s State of the Union address, which the president has already said would focus on the economy. Many of the Supreme Court justices traditionally attend the speech; next week they could have a front-row seat to hear the president’s reaction to their ruling.

Trump said the justices could still attend his address.

“They’re barely invited,” Trump said. “Honestly, I couldn’t care less if they come.”

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