Trump Plans New Tariffs After Supreme Court Blocks Old Ones

The Supreme Court stopped President Trump's global tariffs on Friday. He plans to use other laws to bring them back, which could affect trade worldwide.
By Newsroom | Politics, Business |

A recent Supreme Court decision has invalidated sweeping global tariffs previously enacted by President Donald Trump. In response, Trump has signaled his intent to implement new tariffs using different legal authorities, asserting broad executive power despite the court's ruling. This move sets the stage for a potential renewal of trade disputes and raises questions about the balance of power between the executive and legislative branches in matters of trade policy.

After Supreme Court Loss, Trump Plans to Impose Global Tariffs Using Different Laws - 1

The Supreme Court's decision on Friday struck down tariffs that were enacted under the International Emergency Economic Powers Act (IEEPA). This law, Trump's administration had used extensively to impose duties on goods from various countries, was deemed not to authorize such broad tariff impositions by the high court. The ruling has been described as a significant setback for Trump's economic agenda, with some sources noting that these tariffs accounted for a substantial portion of U.S. tariff revenue.

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After Supreme Court Loss, Trump Plans to Impose Global Tariffs Using Different Laws - 2

The Supreme Court's Decision

The core of the Supreme Court's ruling rested on the principle that the U.S. Constitution grants Congress, not the president, the authority to issue taxes and tariffs. The court upheld a lower court's finding that Trump's use of IEEPA to impose these global tariffs exceeded his executive authority.

After Supreme Court Loss, Trump Plans to Impose Global Tariffs Using Different Laws - 3

  • The court invalidated tariffs imposed using IEEPA.

  • The ruling affirmed Congress's role in setting trade policy and tariffs.

  • The decision followed previous challenges and lower court rulings against the tariffs.

Trump's Response and Alternative Paths

Following the Supreme Court's decision, Trump expressed strong disapproval of the ruling and has vowed to find alternative methods to implement tariffs. He stated that existing tariffs under different statutes, such as Section 232 and Section 301, will remain in effect.

After Supreme Court Loss, Trump Plans to Impose Global Tariffs Using Different Laws - 4

  • Trump indicated that Section 301 investigations into unfair trade practices could lead to further tariffs.

  • He asserted his belief that the administration has "the right to do pretty much what we want to do."

  • Trump has previously utilized these other legal avenues for imposing tariffs on specific goods, like steel and aluminum imports, and on Chinese goods.

Scope and Impact of New Tariffs

While Trump has pledged to impose new tariffs, the scope and duration of these measures, when enacted under different laws, may differ from those previously invalidated.

  • Sources suggest that alternative measures Trump might pursue may not have the same broad reach or impact as those imposed under IEEPA.

  • The potential for these new tariffs to be challenged and overturned remains a point of discussion.

  • The stock market reportedly saw positive movement following the Supreme Court's tariff ruling, indicating potential economic implications.

The Power Struggle Over Trade Policy

The events highlight a broader debate about executive versus legislative authority in setting U.S. trade policy.

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  • Trump's administration had previously relied on expansive interpretations of executive powers to enact significant trade measures.

  • The Supreme Court's ruling serves as a check on such unilateral executive actions in this domain.

  • The ability of the president to use emergency powers for broad economic actions like tariffs has been a contentious issue.

Evidence and Sources

Conclusion

The Supreme Court's ruling has curtailed President Trump's ability to impose sweeping global tariffs under the International Emergency Economic Powers Act. However, Trump has indicated a clear intention to pursue similar trade policies by leveraging other existing legal frameworks, such as Sections 232 and 301 of U.S. law. This strategic pivot suggests a persistent executive focus on trade leverage, even as the constitutional boundaries of presidential authority in this area continue to be tested. The implications of these continued efforts on international trade relations and domestic economic policy remain to be seen.

Frequently Asked Questions

Q: Why did the Supreme Court stop President Trump's tariffs?
The Supreme Court decided on Friday that President Trump's administration used the wrong law, the International Emergency Economic Powers Act (IEEPA), to put tariffs on goods from many countries. The court said only Congress has the power to make laws about taxes and tariffs.
Q: What does President Trump plan to do now?
President Trump said he is unhappy with the court's decision. He plans to use other laws, like Section 232 and Section 301, to put new tariffs on goods. These laws have been used before for things like steel and goods from China.
Q: Who will be affected by these new tariffs?
Businesses and people who buy imported goods could be affected by new tariffs. The exact impact depends on which goods and countries are targeted. The stock market reacted positively to the court's ruling, suggesting some businesses might benefit from the tariffs being stopped for now.
Q: What is the main issue in this situation?
The main issue is about who has the power to set trade rules: the President or Congress. The Supreme Court's decision limits the President's power to act alone on tariffs, but President Trump wants to find other ways to use his executive power on trade.
Q: Will these new tariffs be the same as the old ones?
It is not clear if the new tariffs will be exactly the same or have the same wide effect as the ones blocked by the court. The laws President Trump plans to use, like Section 301, have been used before, but they might target specific goods or countries rather than being global.
Q: What happens next with trade policy?
President Trump wants to continue using tariffs as a tool for trade. The Supreme Court's ruling means these actions will likely be tested again in court, showing a continuing debate about the President's power over trade.