By Ben Meiselas
Hi all, and happy Friday. This has been possibly the worst morning for Donald Trump of his entire presidency. I am currently watching Trump throw a tantrum in a press conference after the Supreme Court ruled that his tariffs under the International Emergency Economic Powers Act are unconstitutional, but let me break down the news of the day that led us here. Remember to like and re-stack to spread the word.
Let me first expand on the big news of the day. The Supreme Court struck down Trump’s attempt to impose sweeping tariffs on countries around the world by unilaterally declaring “emergencies” to justify them. Chief Justice John Roberts, writing for the majority, made clear that Trump’s claim of unlimited authority flew in the face of decades of law and practice. The Constitution places the power of taxation with Congress. Tariffs are taxes. That authority does not belong to a president acting alone.
Neal Katyal, who argued against the tariffs before the Court, put it plainly. “Today, the United States Supreme Court stood up for the rule of law, stood up for Americans everywhere. Its message was simple. Presidents are powerful. But our Constitution is more powerful. Still in America, only Congress can impose taxes on the American people.”
The ruling is a direct rejection of Trump’s effort to weaponize emergency powers to reshape global trade on his own terms. The statute he relied on does not even mention tariffs. Declaring trade deficits or disputes with allies as national emergencies does not grant a president the authority to tax the world.
Trump’s immediate response inside the White House was telling. After learning of the decision during a meeting with governors, he abruptly cleared the press from the room. According to reporting from CNN, what followed was an angry outburst. Witnesses described him repeatedly attacking the courts and fuming over what he called a disgrace. Trump was heard screaming, “These f**king courts!!!” The tariff policy has been the centerpiece of his economic and foreign policy approach. Today’s ruling represents one of the most significant defeats of his presidency.
And that’s not all. It also comes at a moment when the economic data is moving in the wrong direction.
Fourth quarter GDP came in at 1.4 percent. Expectations had been closer to 3 percent. Trump officials had floated projections as high as 5 percent. Instead, the reality was far weaker growth. Inflation, measured by the PCE index, also came in hotter than expected, with headline numbers at 2.9 percent and core at 3 percent. The US economy grew 2.2% last year.
Let me put it in perspective: last year was the worst year for economic growth in the U.S. in the last 9 years, aside from during the COVID pandemic in 2020.
These numbers matter because tariffs do not function the way Trump has long claimed. They are not paid by foreign governments. They are borne by American companies and passed on to American consumers. Studies, including one from the New York Federal Reserve, found that 86 percent of the tariff burden fell on businesses and households in the United States.
The Supreme Court decision now creates another immediate consequence. The administration may be forced to return between 175 and 200 billion dollars collected through these unlawful tariffs. That money was extracted from companies operating here at home. It was a tax imposed without congressional approval. When asked about the prospect of massive tariff refunds by Fox’s Peter Doocy, Trump replied, “I guess it has to get litigated for the next two years. So they write this terrible defective decision. It’s almost like not written by smart people.”
Before the Court’s ruling, Trump illegally previewed GDP data before its official release and attempted to shift blame. After the disappointing numbers became public, senior economic adviser Kevin Hassett attributed the slowdown to Democrats. He argued that the government shutdown shaved two points off growth and suggested that the true trajectory of the economy was closer to 3 percent.
The pattern is familiar. When projections are optimistic, the administration claims it’s a result of the Trump economy. When results fall short, it’s the Democrats’ or Biden’s fault.
The same dynamic played out on inflation. When asked about hotter than expected readings, Hassett dismissed the data as a one month fluctuation and pointed to past inflation under prior leadership. At the same time, he walked back earlier comments suggesting that Federal Reserve economists who documented the consumer impact of tariffs should be disciplined.
For small business owners who challenged the tariffs, the ruling provides long overdue relief. Katyal highlighted their role, noting that they “paved the way for relief to tens of thousands of American businesses and hundreds of millions of Americans across the country.”
The economic warning signs reinforce the stakes. Growth is slowing. Inflation remains persistent. Policies designed to project strength abroad have instead imposed costs at home.
This legal fight is about whether the executive branch can unilaterally tax Americans by reframing policy disagreements as national crises. The Supreme Court answered that question today.
The answer was no.
We will continue to break down what this ruling means for businesses, consumers, and the broader economy in the hours ahead. Michael Popok and I have already released a full legal analysis on our YouTube channel, and I will soon do a full breakdown of Trump’s, well, breakdown, in front of the press. He started off by calling the justices who ruled against him “a disgrace to our nation” who are “fools, lapdogs” and “very unpatriotic.” It only got more unhinged from there.
This has been a rare good day for the rule of law. Let’s keep fighting, Meidas Mighty.
Thank you to all our subscribers.
