How Trump plans to keep tariffs at the center of his economic policy despite stinging court losses
President Donald Trump just can’t quit tariffs.
He suffered a major defeat when the Supreme Court ruled in February 2026 against the sweeping emergency tariffs he announced the previous year. Then, on May 7, a federal court knocked down the interim tariffs he announced after the high court’s decision.
Yet Trump appears undeterred and keeps finding a plan B – and then C and D.
“So, we always do it a different way,” the president told reporters after the May 7 decision. “We get one ruling, and we do it a different way.”
That different way, currently, is using an authority called Section 301. This option is likely to invite more litigation, but it may wind up more powerful and durable than previous levies. To that end, the administration has opened two probes, paving the way for fresh tariffs later this year against China and other major trading partners.
Why does this matter? U.S. trade policy, to the average person, may seem like a complicated mess of acronyms and legalese. But as a trade economist who has been following the tariff wars, I believe Trump’s strategy of making aggressive global tariffs the centerpiece of his foreign economic policy is quite clear – even as his trade policy overall remains deeply unpopular.
And if he succeeds, the average levy may jump to the highs of the “Liberation Day” tariffs of April 2025, before some were scaled back in subsequent – if incomplete – deals with trading partners.
At first glance, Trump’s fixation with tariffs may seem surprising.
They have failed to stimulate U.S. manufacturing and employment, while consumers and importers have absorbed the brunt of the price hikes. But to Trump, what seems to matter is that the Supreme Court took away his tariff-making power when it ended his emergency tariffs. He now wants that power back.
Indeed, that power was the appeal of the Liberation Day tariffs, which let Trump set tariff rates at any level and for any length of time, with the flexibility to assign different tariffs to different countries. With such tools, he could threaten more punishing levies to enforce bilateral trade deals.
In addition, he saw the revenue that those tariffs brought in as a........
