If you pay attention to news outlets, you know that the U.S. Supreme Court recently ruled against some of President Trump's tariffs.
In a 6–3 ruling, the high court held that the law the president relied on — the International Emergency Economic Powers Act (IEEPA) — "does not authorize the president to impose tariffs," effectively invalidating a large share of the duties he levied during his first term and into his current administration.
This ruling is a setback to one of the president's signature economic tools, which he used to aggressively reshape global trade relationships. (See: Supreme Court strikes down Trump tariffs in rebuke of signature policy)
For years, Trump's tariffs have generated substantial federal revenue, over $236 billion in 2025 alone.
These revenues became a notable component of the administration's economic narrative, with the White House frequently citing tariff income as evidence of a tougher stance on trade competitors.
However, the Supreme Court's ruling now raises questions about the legality of those collections and whether future tariff revenue streams will be constrained without congressional action. (More here: Tariffs updates: Trump slams Supreme Court ruling, Trump's tariffs actually slashed the deficit from a record $136.4 billion to less than half that. Here's what else they did | Fortune)
Beyond revenue, tariffs served as a central diplomatic tool for President Trump.
He used the threat, and often the implementation, of tariffs to motivate trading partners into renegotiating agreements.
This strategy played a role in securing revisions to trade arrangements with countries such as Canada, Mexico, South Korea, and India.
The administration argued that tariffs created leverage, compelling other nations to address long‑standing U.S. concerns about market access, labor standards, and industrial subsidies.
With the Supreme Court's decision limiting unilateral tariff authority, the president has had to pivot to be able to employ this tactic in future negotiations. (See: Supreme Court rules most Trump tariffs illegal in major setback for economic agenda - CBS News)
Shortly after the ruling, President Trump issued executive orders that signaled his pivot.
In these orders, he terminated the collection of IEEPA tariffs and imposed a new 15% global tariff on all imports using a different legal authority, Section 122.
Although he may seek additional tariff authority from Congress at some point in the future, this move made it clear that he is committed to tariffs as a tool to reshape trade relationships. (Read additional details here: Supreme Court Holds IEEPA Tariffs Unlawful. President Trump Terminates and Partially Replaces all IEEPA Tariffs. What’s Next? | Perkins Coie)
The president's actions also signal that tariffs will likely continue to bring in substantial revenue. In the past, he has spoken about various ways to utilize this revenue.
Although this writer is certainly open to any ideas the administration has on this front, it is his hope the president will look at all options before making any decisions and then choose the option, or series of options, providing the best bang for the buck for the American people.
I submit that one very good candidate for the use of some of this money would be to shore up the Social Security OASDI Trust Fund.
Based on the latest projections from the CBO, this Trust Fund is now expected to run out of money in 2032.
If this happens and nothing else changes, it's projected that each Social Security recipient would get a 28% cut in benefits at that time. (More here: CBO Baseline Says Social Security Insolvent One Year Earlier, in 2032, Followed by 28% Benefit Cuts - EPIC for America)
Based on information that I have seen, I believe it's reasonable to assume there will be at least 80 million Social Security beneficiaries in 2032.
If all of these folks were faced with a 28% cut in benefits, common sense dictates that it would be devastating to these families, the communities in which they live, and our economy overall. (Please access this link to an excellent chart explaining these cuts in benefits)
In 2024, the Trust Fund paid out about $67 billion more than was collected in FICA taxes. Ironically, $67 billion represents roughly 28% of the estimated $236 billion revenue that tariffs brought in during 2025.
This illustrates that even if some of the funds were used to help shore up a program upon which millions of senior Americans depend, the great majority of those funds would still be available for other priorities. (Critical details here: B. TRUST FUND FINANCIAL OPERATIONS IN 2024, Trust Fund Data)
I should note that I'm not proposing this as a permanent fix for Social Security.
This writer still believes that at some point soon, we need an (Alan) Greenspan-type commission to make recommendations for a permanent solution; however, I speak to seniors every day who are very worried about the future of Social Security.
The temporary use of tariff revenue to pause the draining of the Trust Fund would certainly help these folks sleep a lot better at night.
We Americans can also play our part in a permanent Social Security fix by making sure that Republicans hold the U.S. House and U.S. Senate during the midterm election cycle.
By doing this, we can ensure that Congress will focus on solving problems instead of investigations and impeachment.
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Joe from Texas is a family man with children, grandchildren, and great grandchildren. He's experienced tremendous success and lived the American Dream. His beliefs are both straightforward and deeply held. He believes in God, his family, and the United States of America. Read more Joe Penland, Sr. Insider articles Click Here Now.
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