Hours after the US Supreme Court struck down his sweeping global tariff orders, President Donald Trump announced he would immediately sign a new order imposing a 10% global tariff under Section 122 of the Trade Act of 1974. Trump criticized the 6-3 court ruling as "a disgrace" and claimed he now has "stronger" alternatives to raise revenue.
Key points
- The Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not grant the President unilateral authority to impose broad tariffs.
- The new Section 122 tariffs can only last for 150 days, requiring congressional approval for any extension.
- Existing tariffs under Section 232 and Section 301 remain in place, and the administration plans to use other authorities to maintain the tariff framework.
- The invalidated tariffs had resulted in the US collecting $133 billion in import taxes, including 18% from India.
- Chief Justice John Roberts wrote the majority opinion, stating Congress historically delegates tariff powers with strict limits.
Why it matters
This event signifies a major clash between the Executive and Judicial branches over trade authority, prompting President Trump to immediately seek alternative legal avenues to maintain his economic agenda.
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