The US Supreme Court has ruled that Trump's 'national emergency tariffs' are illegal, prompting him to introduce a new 10% global tariff, which he plans to raise to 15% soon after.
On Friday, the US Supreme Court declared that President Donald Trump's 'national emergency tariff' is illegal, which has significant implications for the administration's trade policies. Following this ruling, Trump responded by instituting a new global tariff at 10%, with intentions to increase it further to 15% shortly thereafter. This unexpected maneuver highlights the administration's use of tariffs as a tool for negotiation and economic leverage despite the legal challenges they face.
The ruling from the highest court could potentially obligate the U.S. government to reimburse billions of dollars to companies that have already paid these tariffs, further complicating the financial landscape for these businesses. Experts cited by E24 emphasize that the Supreme Court's decision not only undermines Trump’s negotiating power but also signals a significant shift in how such tariffs may be legislated in the future. It sheds light on the contentious nature of the tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which had been utilized by Trump as a rapid and effective negotiating tactic.
Overall, the implications of this ruling suggest a tumultuous period ahead regarding U.S. tariff policies, as companies may seek restitution and the administration must navigate the challenges posed by this legal setting. With Trump's methods being called into question, the future of trade negotiations under his administration could shift considerably, altering both domestic and international perceptions of U.S. trade policy.
