U.S. President Donald Trump holds a signed executive order after delivering remarks on reciprocal tariffs during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington D.C. on Apr. 2, 2025. The U.S. Supreme Court ruled on Friday that Donald Trump exceeded his authority in imposing a swath of tariffs that upended global trade, blocking a key tool the president has wielded to impose his economic agenda. AFP-Yonhap
WASHINGTON — The U.S. Supreme Court ruled Friday that President Donald Trump had overstepped his authority in tapping emergency economic powers to impose tariffs — a rare rebuke dealing a sharp blow to his economic agenda.
What are the ramifications of the conservative-majority court's decision, and is it possible for the Trump administration to reinstate duties?
The average U.S. tariff rate is likely to drop — at least temporarily — with some duties imposed under the International Emergency Economic Powers Act (IEEPA) ruled illegal.
"Without IEEPA tariffs, consumers will face an overall average effective tariff rate of 9.1 percent, which remains the highest since 1946 excluding 2025," said The Budget Lab at Yale University.
If the IEEPA tariffs remained in effect, this figure would have been 16.9 percent instead.
Even if the Trump administration replaced the struck-down tariffs, it is likely the new levels will be lower than before, analysts say.
"It will force a reset in tariff policy that is likely to lead to lower overall tariff rates and a more orderly imposition of future tariffs," said Navy Federal Credit Union chief economist Heather Long.
Oliver Allen of Pantheon Macroeconomics added: "Tariffs seem to have dented Trump's popularity, and frustration at high prices remains a hot political topic in the U.S. ahead of November's midterms."
Economists also expect a setback for U.S. government revenues, with some estimating that tariffs linked to IEEPA generated between $130 billion and $140 billion by the end of 2025.
Source: Korea Times News
