The U.S. Supreme Court has overturned the sweeping tariffs imposed by President Donald Trump, marking a significant setback for him on a key policy issue. Trump described the ruling as a “disgrace,” while his administration searches for an undisclosed alternative. Meanwhile, the European Union and the Canadian government announced that they are assessing the implications of the decision.

The ruling focuses on tariffs imposed under emergency powers legislation, including the broad reciprocal tariffs Trump had applied to nearly all countries.

This is the first part of Trump’s broader agenda to be brought directly before the nation’s highest court, which he helped shape by appointing three conservative justices during his first term.

In his first reaction, Trump called the Supreme Court’s rejection of the tariffs a “disgrace,” arguing that the decision undermines his trade efforts.

CNN reported, citing informed sources, that Trump has told close associates he has an alternative to the tariffs, though he has not revealed details about this alternative or when it might be introduced.