Plans floated by President Donald Trump to send $2,000 checks to Americans funded by tariff revenue were uncertain even before the US Supreme Court ruled against key elements of his trade policy. On February 20, the court found that Trump had exceeded his authority by imposing sweeping tariffs without clear authorisation from Congress.
The ruling means some tariff revenue collected last year will have to be refunded to businesses. Trump had previously warned "WE'RE SCREWED" if the court deemed the tariffs illegal.
In a 6–3 decision,the court ruled againstthe President's tariff orders, marking the first major high court setback of his second term.
Chief Justice John Roberts joined Justices Sonia Sotomayor, Elena Kagan, Neil Gorsuch, Amy Coney Barrett and Ketanji Brown Jackson in the majority.
Justices Clarence Thomas, Samuel Alito and Brett Kavanaugh dissented, arguing that Mr Trump had the authority to issue the tariffs.
Speaking to reporters after the ruling, Trump criticised the court. "I'm ashamed of certain members of the court, absolutely ashamed for not having the courage to do what's right for our country," he said.
He added that he had alternatives to achieve his economic goals, though he did not elaborate. He also ordered a temporary 10% global tariff under a different legal basis from the one struck down by the court.
During his first year back in office, Trump repeatedly highlighted the revenue generated by tariffs, which he said had brought in hundreds of billions of dollars.
In a January interview withThe New York Times,he suggested the funds could be used to send payments to Americans. "The tariff money is so substantial. That's coming in, that I'll be able to do $2,000 sometime. I would say toward the end of the year," he said.
However, even before the Supreme Court's decision, there was no clear legislative plan or timeline to authorise such payments, which Trump had indicated could occur in 2026.
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