Donald Trump is exploring new legal grounds to impose tariffs on imports to the United States after the Supreme Court ruled that he cannot set new tariff rates without Congressional consent. He is referring to a rarely used provision from a 1974 trade law that allows the president to impose tariffs of up to 15 percent for a maximum of 150 days. Following this announcement, on February 20, Trump declared that he was implementing a 10 percent tariff on all imported goods based on this legal basis.

The Supreme Court’s decision on February 20 is significant because it restricts the president's power in trade policy, necessitating Congressional approval for any future tariff changes. Trump's reaction to seek alternative ways to raise tariffs indicates his ongoing commitment to protectionist trade policies, which he believes are necessary for American economic interests. This move could escalate tensions with trading partners and potentially lead to retaliatory measures, impacting global trade relations.

The implications of Trump's action could be far-reaching, affecting not only the U.S. economy but also international trade dynamics. By relying on a decades-old law that has not been applied before, Trump may be testing the limits of executive power in trade, which could set a precedent for future administrations. If successful, it may embolden future presidents to circumvent Congress in trade matters, significantly changing U.S. trade policy and relationships with allies and adversaries alike.