Supreme Court blocks Trump tariffs—but hands him a smarter path forward

Trump loses Supreme Court tariff case but can turn defeat into victory using remaining trade powers to defend American firms from EU regulations.

Charles N. Steele is director of Hillsdale’s Center for Commerce and Freedom, associate professor of Economics, and the Herman A. and Suzanne S. Dettwiler Chair in Economics at Hillsdale College.

While there were reasonable arguments on both sides, six of the nine justices ruled they are not, and that the IEEPA does not empower the president to impose tariffs. What are the likely economic consequences of this ruling, and what should it imply for future Trump trade policy?

First, note that as economic policy, tariffs are a bad idea. International trade raises incomes and promotes economic growth in every country that trades. Trade is mutually beneficial, win-win for all trading parties. It is a popular myth that trade destroyed American manufacturing. American manufacturing has steadily increased since 1970, more than doubling, as shown by data collected by the Federal Reserve Bank of St. Louis.