Supreme Court Strikes Down Trump Tariffs, Recent 10% Global Tariff Announced

The Supreme Court on Friday delivered a significant blow to former President Donald Trump’s trade policies, ruling 6-3 against his authority to impose sweeping tariffs without congressional approval. In response, President Trump announced he will sign an executive order enacting a new 10% “global tariff” under Section 122 of the Trade Act of 1974.

Supreme Court Ruling

The Court’s decision centered on tariffs imposed under the International Emergency Economic Powers Act (IEEPA), including “reciprocal” tariffs levied on numerous countries. Chief Justice John Roberts authored the majority opinion, stating that “The Framers did not vest any part of the taxing power in the Executive Branch.” NBC New York reports the ruling does not address whether companies will be refunded for tariffs already paid.

Justices Neil Gorsuch and Amy Coney Barrett, both nominated by Trump, joined the liberal justices in the majority. Conservative Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh dissented. This marks a rare instance of the Court curbing presidential power during Trump’s tenure, despite its 6-3 conservative majority. NBC New York

Trump’s Response: A New 10% Global Tariff

Following the ruling, President Trump expressed his disappointment, calling the decision “deeply disappointing” and stating he was “ashamed” of some members of the court. He announced his intention to impose a new 10% global tariff under Section 122 of the Trade Act of 1974. CNBC

This new tariff will be in addition to existing levies and is limited to 150 days. AP News. A White House official indicated the Section 122 tariffs would effectively replace the duties invalidated by the court. CNBC

Background: Trump’s Tariff Policies

The Supreme Court’s decision impacts tariffs imposed under IEEPA, including Trump’s “reciprocal” tariffs and those related to drug trafficking. The Court ruled that IEEPA does not authorize the President to impose tariffs. CNBC

Trump has consistently maintained that tariffs are crucial for the U.S. Economy and for rebuilding the nation’s manufacturing base. CNBC

Key Takeaways

• The Supreme Court struck down President Trump’s authority to impose sweeping tariffs under IEEPA in a 6-3 decision.
• President Trump has announced a new 10% global tariff under Section 122 of the Trade Act of 1974.
• The new tariff is temporary, lasting 150 days, and will be applied on top of existing tariffs.
• The ruling represents a rare check on presidential power by the Supreme Court.