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U.S. President Donald Trump used his State of the Union address Tuesday night to defend and reaffirm his tariff agenda, despite a recent ruling by the Supreme Court of the United States that struck down part of his trade framework.
Calling the decision “disappointing,” Trump emphasized that tariffs remain a cornerstone of America’s economic strength and declared that he would continue implementing new duties under alternative legal authorities — even without direct support from Congress.
The remarks signal that U.S. trade policy may be entering a new phase of tension, raising fresh questions about the balance of power between the White House and Congress.
Last week, the Supreme Court ruled that the President had exceeded his authority by imposing broad tariffs under the International Emergency Economic Powers Act (IEEPA).
The decision was widely viewed as a significant setback to the administration’s trade strategy, which had relied heavily on executive powers to impose sweeping tariffs without full legislative procedures.
In response, Trump quickly announced a new 10% tariff, with plans to raise it to 15%, citing Section 232 of the Trade Expansion Act as the legal basis. Section 232 allows tariffs on imports deemed a threat to national security.
However, Section 232 has a narrower scope than the emergency powers previously used. When the new tariffs officially took effect Tuesday, the rate stood at 10%, lower than the 15% initially proposed.
This development suggests that institutional and legal constraints may limit the administration’s ability to expand tariffs aggressively in the near term.
One of the most striking statements in the address was Trump’s renewed claim that tariff revenue could substantially replace the modern income tax system.
“Tariffs will… substantially replace the modern income tax system,” Trump said, arguing that import duties generate economic dividends for the United States.
Economists remain divided on this argument. While tariffs do generate government revenue, many analysts note that the cost is often passed on to importers and consumers through higher prices.
Nevertheless, Trump pointed to recent gains in U.S. stock markets as evidence that his tariff policy is strengthening the economy.
The speech lasted one hour and 48 minutes — making it the longest State of the Union address in U.S. history.
Beyond trade, Trump addressed immigration, inflation, economic growth, artificial intelligence, and foreign policy. He repeatedly criticized the Democratic Party and former President Joe Biden, arguing that his administration is reversing previous policy failures.
Trump also claimed to have prevented eight international conflicts since taking office and referenced ongoing negotiations with Iran as part of a broader strategy to stabilize global markets.
Although Trump expressed determination to continue his tariff strategy, Congress may ultimately play a decisive role in shaping future trade measures.
Expanding tariffs under Section 232 or similar mechanisms could require additional procedural steps and political negotiation, particularly if broader economic sectors are affected.
This dynamic sets the stage for potential tension between the executive and legislative branches over trade authority.
International trading partners are closely watching Washington’s next moves. While the administration stated that existing trade agreements remain valid, Trump warned that any future deals would be “much tougher” for counterparts.
The uncertainty surrounding tariff policy could lead to:
Increased risk of trade retaliation
Inflationary pressure from higher import costs
Supply chain disruptions
Heightened market volatility
In addition to trade, Trump emphasized the importance of artificial intelligence and energy infrastructure. He stated that major technology firms should build their own power plants to supply electricity to data centers, preventing higher utility costs for households.
The remarks suggest a broader economic strategy combining trade protectionism with domestic industrial development, particularly in high-tech sectors.
President Donald Trump’s address underscores that tariffs remain central to his economic strategy, despite legal obstacles from the Supreme Court.
With executive authority under scrutiny and Congress potentially asserting greater oversight, U.S. trade policy stands at a critical juncture.
For global markets, the message is clear: tariffs will continue to play a key role in America’s economic policy — and the legal and political debates surrounding them are far from over.
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