In a big blow toDonald Trump, the Supreme Court in a 6-3 ruling invalidated the global tariffs imposed by the US president last year, marking a significant setback for his economic strategy. The court emphasised that only Congress has the constitutional authority to impose taxes, including tariffs, countering Trump's use of emergency powers to unilaterally impose sweeping "reciprocal" tariffs on nearly every other country. The judges also found that the International Emergency Economic Powers Act (IEEPA) does not authorise the imposition of duties.
After the decision, Trump said he was “absolutely ashamed” of some justices who ruled 6-3 against him, calling them “disloyal to our Constitution” and “lapdogs.” At one point, he even raised allegations of foreign influence without citing any evidence.
The first thing the US President has already done is sign an order making 10 per cent global tariff on all countries, effective "almost immediately". A White House official stated that this new tariff will remain in place until another authority is invoked, emphasising the expectation that trade partners abide by US trade deals. This is aimed at addressing "balance-of-payments issues" and "unfair trade practices".
Sharing the announcement in a post on Truth Social, the US president said, "It is my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries, which will be effective almost immediately. Thank you for your attention to this matter! PRESIDENT DONALD J. TRUMP"
The official also advised all the trade partners to abide by the trade deals.
This move allows for a temporary import surcharge (up to 15%) for 150 days to address balance-of-payments deficits. So the 10 per cent tariffs are expected to stay for a few months at least.
Also Read:10% or 18%? What India Really Pays After Trump's New Tariff Order | Math Explained
The tariff decision also does not stop Trump from imposing more duties under other laws. Top administration officials have said they expect to keep the tariff framework in place under other authorities. And Trump has already threatened "powerful alternatives" if stopped.
“Their (Supreme Court) decision is incorrect,” he said after the ruling. “But it doesn’t matter because we have very powerful alternatives.”
The Treasury had collected more than USD 133 billion from the import taxes the president has imposed under the emergency powers law as of December, according to federal data. The impact over the next decade is estimated at some USD 3 trillion.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
