WASHINGTON – President Donald Trump signed an executive order Friday imposing a 10% global tariff on all imported goods, hours after the Supreme Court struck down his previous attempt to implement sweeping tariffs under the International Emergency Economic Powers Act (IEEPA). The move, described by the President as a response to a “deeply disappointing” and “shameful” court decision, immediately injected further uncertainty into global trade.
The Supreme Court, in a 6-3 ruling, determined that IEEPA does not grant the President the authority to impose tariffs. Chief Justice John Roberts, writing for the majority, stated that the law “contains no reference to tariffs or duties” and that no previous president had interpreted it to confer such power. Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissented.
During a press briefing at the White House, President Trump vehemently criticized the court’s decision. “I’m absolutely ashamed of certain members of the court, absolutely ashamed, for not having the courage to do what’s right for our country,” he said. He also indicated he was exploring other avenues for implementing tariffs, suggesting the 10% levy was just the first step.
The initial tariffs, implemented during Trump’s second term, were intended to address perceived trade imbalances and bolster domestic manufacturing. However, they faced legal challenges from numerous businesses and countries, arguing that the President had overstepped his authority. The ruling marks the most significant legal defeat for Trump during his second term.
The new tariffs, authorized under Section 122 of federal law, are intended to circumvent the Supreme Court’s ruling. However, legal experts suggest this approach may also face challenges, as the scope and legality of Section 122 are likely to be scrutinized. The President claimed the new tariffs would generate even more revenue than the previous measures, dismissing opponents as “obnoxious, ignorant and loud.”
The Supreme Court’s decision comes after allowing the President to temporarily enforce the tariffs while legal proceedings were underway. The court’s ruling invalidating the global tariffs is a significant blow to the President’s economic agenda and his broader vision of American trade policy. The decision throws U.S. Trade policy back into uncertainty, according to the Associated Press.
The ruling has already sparked fierce pushback from international trade partners. South Africa, in particular, faces potential repercussions, as Trump’s previous tariffs on South African goods were deemed illegal under the new ruling. The implications for global supply chains and consumer prices remain unclear, though economists predict increased costs for businesses and consumers alike.
As of Friday evening, the White House had not released detailed guidance on the implementation of the new 10% tariff, leaving businesses and trade officials awaiting further clarification. The legal challenges to the new tariffs are expected to begin immediately.
