Immediate Tariff Hike Following Supreme Court Ruling
US President Donald Trump announced an immediate increase of global tariffs from 10% to 15%, just one day after the Supreme Court ruled that his sweeping use of emergency powers exceeded his authority. Trump said the move was necessary to “protect our country” and described the court’s decision as “poorly written and anti-American.” He emphasized that other legal avenues remain available for imposing trade duties.
Legal Limits and Alternative Measures
The Supreme Court’s 6–3 ruling clarified that only Congress has the constitutional authority to impose taxes, including tariffs, with Chief Justice John Roberts noting the Framers did not vest taxing power in the executive branch. Despite the setback, the administration plans to rely on Section 301 and Section 122 of the Trade Act of 1974, which allow targeted investigations and temporary import surcharges. These alternatives come with tighter timeframes and limits, preventing the broad, rapid action that IEEPA previously allowed.
Ongoing Disputes and Market Concerns
Trump’s tariff actions have drawn lawsuits from states and businesses challenging the legality of his emergency powers approach. While some tariffs remain in effect, questions about refunds and potential legal challenges persist. Critics note public concern over rising costs, while the White House insists it will continue pursuing measures to counter perceived unfair foreign trade practices and maintain protections for American industries.
