Trump Imposes 10% Global Tariff After SCOTUS Rebuke
The U.S. Supreme Court ruled to curb former President Trump's power to unilaterally impose tariffs under emergency acts, reasserting its role as a check on executive authority. In response, Trump signed an order for a new 10% global tariff on all imports, citing alternate statutory powers. Trump claimed the ruling paradoxically affirmed his authority to use other tools like the Trade Expansion Act of 1962.
- The Supreme Court's 6-3 decision in *Learning Resources, Inc. v. Trump* held that the International Emergency Economic Powers Act (IEEPA) of 1977 does not give the president the authority to impose tariffs unilaterally. The majority opinion stated that the power to levy taxes and duties is vested in Congress and that IEEPA contains no clear language delegating such a significant power. - Chief Justice John Roberts, writing for the majority, invoked the "major questions doctrine," arguing that if Congress intended to delegate a decision of such vast economic and political significance, it must do so explicitly. The tariffs imposed under IEEPA were described by the court as "unbounded in scope, amount, and duration." - The Trade Expansion Act of 1962, which the Trump administration is now citing, allows the president to impose tariffs under Section 232 if imports are found to "threaten or impair the national security." This provision requires an investigation and recommendation by the Secretary of Commerce before the president can act. - Prior to his first term, Section 232 had been used infrequently to impose trade restrictions, with the last instance occurring in 1986. Trump previously used this authority in 2018 to place tariffs on steel and aluminum imports. - In addition to the Trade Expansion Act, the administration has cited Section 122 of the Trade Act of 1974 as authority for the new global tariff. This law allows for temporary measures to address balance-of-payment deficits, but any tariffs imposed under it expire after 150 days without congressional approval. - Importers who paid duties under the now-invalidated IEEPA tariffs may be eligible for refunds, with estimates of the total amount ranging from $100 billion to over $200 billion. However, the Supreme Court's ruling did not specify how or when these refunds would be administered. - Broad-based tariffs are expected to have the most significant impact on the manufacturing, agriculture, retail, and construction sectors, which rely on global supply chains for components and finished goods. - The White House has indicated that goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA) will be exempt from the new 10% global tariff.
