Trump Adds 10% Global Tariff After Supreme Court Blocks Old Ones

President Trump has announced a new 10% global tariff, replacing ones blocked by the Supreme Court. This is a big change for global trade.
By Newsroom | Politics, Business |

Washington D.C. – Following a significant Supreme Court decision that struck down some of his previous tariffs, President Donald Trump has announced the implementation of a new 10% global tariff. This move, described as a response to a "deeply disappointing" ruling, signals a continuation of his trade policy, with markets anticipating potential shifts on Monday.

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The Supreme Court's ruling, a 6-3 decision, found that Trump had overstepped his authority by using an emergency powers law, the International Emergency Economic Powers Act (IEEPA), to impose broad tariffs on goods from most countries. The court stated that the President lacked the necessary authority under this specific statute. However, the ruling also indicated that Trump could potentially reimpose tariffs through other existing legal avenues.

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In response, Trump stated at a press briefing that he has the "right to do pretty much what we want to do" and that existing tariffs under statutes like Section 232 and Section 301 would remain in effect. He also indicated that new investigations into unfair trade practices could lead to further tariffs.

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Background of the Tariffs and Court Ruling

The tariffs that were struck down were a key part of Trump's economic agenda, with reciprocal tariffs and drug-trafficking-related duties also being based on an expansive interpretation of IEEPA. The majority of U.S. tariff revenue in the previous year reportedly came from these IEEPA duties.

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The Supreme Court's decision on Friday challenged this expansive interpretation. Chief Justice Roberts cited a "lack of historical precedent" in the ruling against the tariffs. Some political figures have welcomed the decision, viewing it as a check on executive power regarding tariffs.

New Tariff Implementation and Mechanisms

Trump has stated that the new 10% global tariff has been enacted by executive order. While the exact details of the implementation are still emerging, it appears Trump intends to utilize other statutes to enact these new duties.

  • One identified pathway is through laws like Section 301, which allows for investigations into potential unfair trade practices, potentially leading to new tariffs.

  • Another mechanism mentioned is related to countries that send more to the United States than they import. However, tariffs enacted this way may have a 150-day time limit unless extended by Congress.

  • Trump's administration also had reciprocal tariffs and drug-trafficking-related duties in place, some of which remain active.

Market Expectations

With the announcement of new tariffs and the confirmation of existing ones, markets are bracing for potential reactions. The economic implications for trade, the global economy, and personal finances are expected to be significant. The specific impact on Monday's trading will depend on further details about the scope and enforcement of these new measures, as well as any subsequent political or economic developments.

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Evidence

"The Supreme Court struck down President Donald Trump’s far-reaching global tariffs in a 6-3 decision on Friday, handing him a stinging loss on an issue crucial to his economic agenda." - AP News

"The Supreme Court ruled that Trump exceeded his authority when imposing sweeping tariffs using a law reserved for a national emergency." - NBC News

"Trump announces new 10% global tariff after raging over Supreme Court loss." - CNBC

"Trump signs new 10% global tariff after 'deeply disappointing' court ruling." - USA Today

"Trump made tariffs central to his presidency." - Economic Times

"Trump also declared that all the tariffs active under statutes known as Section 232 and Section 301 will remain 'in full force and effect.'" - CNBC

"The new tariffs apply to countries that send the United States more than they import. But that type of tariff lasts for only 150 days, unless Congress votes to extend them." - USA Today

Expert Analysis

  • Legal Interpretation: While the Supreme Court ruled against Trump's use of IEEPA, legal experts suggest that other statutes, such as Section 301, provide grounds for imposing tariffs to address specific trade concerns. The breadth of these alternative statutes and the conditions for their use remain points of discussion.

  • Economic Impact: The continuation and introduction of tariffs are expected to create ongoing uncertainty in global trade. Analysts are observing how these measures will affect supply chains, consumer prices, and international business relationships. The effectiveness of tariffs as a tool to address trade imbalances or unfair practices is a subject of continuous debate.

Conclusion

President Trump has implemented a new 10% global tariff following the Supreme Court's decision to strike down his previous tariffs imposed under IEEPA. While the court found he exceeded his authority with those specific tariffs, Trump asserts his right to impose duties through other legal means, including existing statutes like Section 301 and measures related to trade deficits. Markets are awaiting further clarity on the implementation and scope of these new tariffs, with potential for continued market volatility. The long-term effects on trade and the economy will depend on how these policies are enforced and whether further legal or political challenges arise.

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Frequently Asked Questions

Q: Why did President Trump announce a new 10% global tariff on Friday?
President Trump announced a new 10% global tariff because the Supreme Court blocked his previous tariffs. He said the ruling was 'deeply disappointing' and wants to continue his trade policies.
Q: What did the Supreme Court rule about President Trump's old tariffs?
The Supreme Court ruled 6-3 that President Trump used the wrong law, the International Emergency Economic Powers Act (IEEPA), to put on his old tariffs. They said he went beyond his power with that law.
Q: Can President Trump still put tariffs on goods?
Yes, President Trump said he can still put tariffs on goods using other laws, like Section 301. He also said existing tariffs under laws like Section 232 will stay.
Q: Who is affected by the new 10% global tariff?
The new 10% global tariff affects countries that send more goods to the U.S. than they buy from it. Markets are also watching closely for how this will change trade and business on Monday.
Q: What happens next with President Trump's new tariffs?
The new tariffs are put in place by executive order. Some new tariffs might only last for 150 days unless Congress agrees to keep them. Markets are waiting for more details on how they will work.