Washington: The fate of the sweeping tariffs imposed by US President Donald Trump on almost every country in the world, including India, is expected to be decided today, with potentially far-reaching consequences for the global economy. Two lower US courts have already ruled that most of these tariffs are illegal and constitute a serious abuse of presidential power. The Supreme Court is now set to deliver its verdict on Trump’s appeal, following earlier hearings in which even the justices expressed scepticism over whether the tariffs could legally remain in force.
If the Supreme Court rules against the administration, it would mark a significant legal and political setback for Trump at the international level. Such a decision would not only undermine his aggressive “tariff diplomacy” but also force the US government to refund all tariff revenues already collected to the affected companies. The ruling would strike at the heart of Trump’s attempt to project economic dominance by weaponising trade policy against both rivals and allies.
The stakes are high. Trump has openly warned that a Supreme Court rejection of the tariffs would be an “economic disaster” for the United States, even claiming it would reduce the country to a “third-world ” power. Several governments, including those heavily targeted by the tariffs, are watching closely in the hope that the court will curb what they view as unilateral and coercive US trade behaviour.
At the centre of the legal battle is the International Emergency Economic Powers Act (IEEPA), under which Trump announced the tariffs last April. While the courts have questioned the use of emergency powers to justify blanket trade barriers, the administration continues to argue that alternative statutory provisions would still allow the president to impose tariffs even if the IEEPA route is blocked. Despite mounting legal pressure, Trump has doubled down politically. Writing on Truth Social, he described the tariffs as a historic achievement, claiming the US trade deficit is at its lowest level since 2009 and boasting that tariff revenues have crossed $600 billion. Critics, however, argue that these claims obscure the broader economic damage and legal overreach involved.
Trump defies international law as US turns from Venezuela to Greenland
Trump has also drawn sharp criticism internationally for declaring that he does not need international law and is guided solely by his own sense of justice. His recent actions and rhetoric have reinforced fears of unchecked American unilateralism. Following US intervention in Venezuela, including the arrest of President Nicolas Maduro and the seizure of key oil assets, Trump has now turned his attention to Greenland, a mineral-rich territory under Denmark. Reports suggest Washington is even considering offering $100,000 to each Greenlander in exchange for severing ties with Copenhagen.
Meanwhile, Trump has hinted at military action against Iran if its government cracks down on protesters, while Russia continues intense missile attacks in Ukraine. This combustible mix of geopolitical crises and economic uncertainty has pushed investors towards safe-haven assets. Gold prices rose $17 an ounce to $4,470, while oil markets reacted to fears of supply disruptions. WTI crude climbed 0.48 per cent to $58.04 a barrel, and Brent crude rose 0.53 per cent to $63.32.
