Supreme Court Rejects Trump's Tariff Plan, But He's Trying Again

New analysis shows Trump's revised steel and aluminum tariffs will likely increase prices despite promises of economic relief.

Apr. 2, 2026 at 12:06am

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President Donald Trump is preparing to reshape his steel and aluminum tariff regime, altering duties on finished products to help simplify compliance. However, the changes could effectively raise costs for many imports, according to a new analysis. This comes after the Supreme Court rejected Trump's previous tariff plan as illegal.

Why it matters

Trump's tariffs have had major economic consequences, with most economists predicting they would negatively impact the economy. Data shows the U.S. has continued to lose manufacturing jobs at an accelerating pace since Trump implemented the tariffs, contrary to his promises of reviving the economy.

The details

The Trump administration plans to apply a 25% tariff to all finished imported aluminum products, replacing the current 50% duty that only applies to the value of steel or aluminum used in a product. This would effectively raise costs for many imports. Even Trump's initial 25% steel and 10% aluminum tariffs in 2018 had major economic consequences when combined with his other tariffs at the time.

  • In 2018, Trump imposed a 25% tariff on imported steel and 10% tariff on imported aluminum.
  • In 2025, the pace of losing manufacturing jobs accelerated to 1.2%, faster than the 0.7% decline in 2024.
  • In 2017, manufacturing jobs actually increased by 0.7%.

The players

Donald Trump

The former president who is preparing to reshape his steel and aluminum tariff regime.

Gavin Bade

A Wall Street Journal reporter who co-authored an analysis on Trump's revised tariffs.

Bob Tita

A Wall Street Journal reporter who co-authored an analysis on Trump's revised tariffs.

Joe Lieberman

A former Democratic senator from Connecticut who argued that trade has been positive for the American economy.

Phil Gramm

A former Republican senator from Texas who argued that Trump's tariffs have failed to revive the economy.

Donald J. Boudreaux

A professor of economics at George Mason University who argued that Trump's tariffs have failed to revive the economy.

Garrett Watson

The director of Policy Analysis at the nonpartisan Tax Foundation, who wrote that tariffs fail to bring in the revenue Trump claims and instead cause higher prices, lower wages, and smaller profits.

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What they’re saying

“There's no question that a certain number of people in our country feel that they somehow suffer from foreign competition. And I suppose some people do. They do. But overall, bottom line, trade has been a tremendously positive for the American economy creating jobs, and incidentally, bringing in lower-price consumer products that people in the lower-income, middle-income groups benefit from.”

— Joe Lieberman, Former Democratic Senator from Connecticut

“If the economy was 'dead' in 2024, there's no evidence Mr. Trump's tariffs have brought it back to life. Most economists predicted that the economy's performance would be negatively affected. Thus far data overwhelmingly indicate that is what has happened.”

— Phil Gramm, Former Republican Senator from Texas

“The world isn't deglobalizing. It's reglobalizing around partners who commit to rules rather than those who wield tariffs like a club.”

— Donald J. Boudreaux, Professor of Economics, George Mason University

“Trump thinks tariffs are 'the golden ticket to our revenue problems.' In fact, tariffs fail to bring in anywhere near the revenue Trump says they will but instead cause higher prices, lower wages and smaller profits that threaten to offset much of the growth and income gains from the 2025 tax cuts.”

— Garrett Watson, Director of Policy Analysis, Tax Foundation

What’s next

The Supreme Court will likely have to rule on the legality of Trump's revised tariff plan, as his previous tariffs were struck down as illegal.

The takeaway

Trump's tariff policies have failed to revive the economy as promised and have instead contributed to continued job losses in manufacturing and higher prices for consumers. Experts argue that simpler policies and an honest accounting of the nation's finances would do more to help working families than another round of tariff fights.