The Supreme Court declared U.S. President Donald Trump’s broad global tariffs imposed under the International Emergency Economic Powers Act illegal, ruling that he had overstepped his authority under that law.
The 6-3 decision, written by Chief Justice John Roberts Jr., could have significant implications for the economy and consumers.
The federal government has collected more than $200 billion in tariffs since the start of last year. Before the decision, the administration had said that a loss in the case could force the government to unwind trade deals with other countries and potentially pay tens of billions of dollars in refunds.
Trump blasted the Supreme Court, calling the justices “disloyal,” before countering. “We have alternatives, great alternatives,” Trump said. “Could be more money. We’ll take in more money, and we’ll be a lot stronger for it.”
Trump retaliates
Trump said on Friday, Feb. 20, that he would impose a 10% global tariff (that has been raised to 15% as of Feb. 23) for 150 days to replace some of his emergency duties that were struck down by the U.S. Supreme Court. He said his order would be made under Section 122 of the Trade Act of 1974 and the duties would be over and above tariffs that are currently in place.
The statute allows the president to impose duties of up to 15% for up to 150 days on any and all countries related to “large and serious” balance of payments issues. It does not require investigations or impose other procedural limits.
Trump said his administration was also initiating several Section 301 unfair trade practices investigations “to protect our country from unfair trading practices of other countries and companies.”
Trump’s decision to lean on other statutes, including Section 122, while initiating new investigations under Section 301 had been widely anticipated. But the 10% tariffs he announced Friday can only remain in effect for 150 days, and Section 301 investigations generally take months to complete.