Trump Prepares “Plan B” as Supreme Court Set to Rule on Global Tariffs

New Delhi / Washington D.C.: U.S. President Donald Trump has been aggressively implementing global tariffs, but his policies now face a crucial legal test. The U.S. Supreme Court is expected to deliver a verdict on January 14 regarding the legality of Trump’s tariffs. If the ruling goes against him, Trump has reportedly prepared a “Game 2 Plan” to continue his tariff agenda.

Trump Warns of Financial Fallout
On Monday, Trump cautioned that a Supreme Court decision invalidating his global tariffs could cause massive financial losses for the United States. Posting on his social media platform Truth Social, he wrote, “If the Supreme Court rules against this critical national security measure, we will be devastated!” The tariffs, challenged as a potential overreach of presidential authority, are considered a major test of executive power, with significant implications for both the U.S. and global economies.

Legal Basis of the Tariffs
The tariffs were implemented under the 1977 International Emergency Economic Powers Act (IEEPA), which Trump invoked by declaring a national emergency to address the U.S. trade deficit. During hearings in November, several justices expressed doubts about whether IEEPA grants the President broad authority to impose global tariffs without Congressional approval.

Potential Financial Damage
Trump emphasized that the financial impact would exceed the tariff revenue already collected. A ruling against the administration could force the U.S. government to refund hundreds of billions of dollars in tariff revenue, in addition to covering claims from private businesses that had taken measures to avoid the tariffs. According to government data, the IEEPA-based tariffs alone contributed over $100 billion of the roughly $200 billion in additional federal tariff revenue collected in 2025.

“Game 2 Plan” in Motion
Lower courts have already ruled against the administration. In August, a federal appellate court upheld that Trump exceeded his authority by imposing global tariffs under emergency powers. The Supreme Court case was brought by a coalition of businesses and 12 U.S. states, mostly led by Democrats, arguing that only Congress has the constitutional power to levy tariffs, and that IEEPA makes no mention of tariffs.

Trump has signaled that if the Supreme Court rules against him, he intends to continue pursuing his tariff agenda through alternative legal pathways. However, he acknowledged that these alternatives would be slower and could face additional challenges. A negative ruling would not only undermine a key pillar of his domestic and trade policy, but also reshape America’s relationships with major trading partners, including the European Union, Japan, South Korea, the UK, and India.