\n<\/p>\n
The court ruled that Trump exceeded his authority and should have got congressional approval for the tariffs, which he announced on what he dubbed \u201cliberation day\u201d last April. The tariffs, set at varying rates, covered dozens of countries from war-torn Syria and impoverished Lesotho to the UK, China, Canada, Mexico, Japan and EU countries.<\/p>\n
The conservative-majority court ruled six to three in the judgment, saying the International Emergency Economic Powers Act (IEEPA) \u2013 the 1977 law designed to address national emergencies Trump had used to implement them – \u201cdoes not authorise the president to impose tariffs\u201d.<\/p>\n
The decision affirms earlier findings by lower courts that tariffs Trump imposed under the IEEPA were illegal.<\/p>\n
Nope. Trump \u2013 who faces a backdrop of slowing economic growth \u2013 has made it clear that he is not backing down from his trade war.<\/p>\n
Hours after the ruling, Trump held a press conference where he vowed to keep tariffs in place using a different law than the IEEPA.<\/p>\n
He announced a new 10% global tariff and said that his administration will conduct additional \u201cinvestigations\u201d into unfair trading practices using the Trade Act of 1974. The US president said he feels emboldened to continue his trade war because the court curbed his powers under the IEEPA only.\u00a0<\/p>\n
\u201cWe have other ways, numerous other ways,\u201d Trump said. \u201cWhile I am sure that they did not mean to do so, the supreme court\u2019s decision today made a president\u2019s ability to both regulate trade and impose tariffs more powerful and more crystal clear, rather than less.\u201d\u00a0<\/p>\n
The US treasury secretary, Scott Bessent, said that the administration plans to use sections of the Trade Act of 1974 to enact the new tariffs, which \u201cwill result in virtually unchanged tariff revenue in 2026\u201d, according to treasury estimates.\u00a0<\/p>\n
While the White House has these other alternative routes to pass tariffs, there are more restrictions in the form of capped amounts and durations of tariffs, along with procedural prerequisites such as investigations and hearings.\u00a0<\/p>\n
The administration will pass a 10% global tariff under Section 122 of the Trade Act of 1974, which allows tariffs of up to 15% to address \u201cfundamental international payments problems\u201d. The law caps the tariff at 150 days while the president addresses alleged \u201clarge and serious\u201d deficits in the country\u2019s balance of payments.<\/p>\n
Other sections of the Trade Act will require an investigation that determines whether the tariffs are necessary for national security or will remedy unfair trade practices.\u00a0<\/p>\n
Trump acknowledged that the White House will have to do more work but said, ultimately, that the tariffs won\u2019t stop.\u00a0<\/p>\n
\u201cWe\u2019re using things that some people thought we should have used in the first place but it\u2019s a little more complicated. The process takes a little more time, but the end result is going to get us more money,\u201d he said.\u00a0<\/p>\n
When asked whether existing trade deals with foreign countries are affected by the ruling, Trump said: \u201cMany of them stand. Some of them won\u2019t, and they\u2019ll be replaced with the other tariffs.\u201d\u00a0<\/p>\n
Trump\u2019s annual State of the Union address next week could further shed light on his next steps.<\/p>\n
Companies that have invested significant time and money to adapt to America\u2019s new import red tape will not adjust supply chains again until they know the long-term plan.<\/p>\n
Richard Rumbelow, director of international business at Make UK, said: \u201cAs the situation continues to evolve, businesses now need clear, practical guidance on how the ruling will be implemented, alongside progress on resolving the remaining section 232 tariffs on UK steel and aluminium.\u201d<\/p>\n
Tariff revenues for last year are estimated to have been between $240bn and $300bn, most of it owing to US manufacturers and consumers. The cost to the US government could be vast if it is forced to pay the money back to US importers.<\/p>\n
McLaughlin says that \u201cmany studies show that US firms have paid 90% of that\u201d with much of it passed on the consumer through price rises in shops.<\/p>\n
Even if the US administration was forced to pay that back, it would \u201cnot be paid back soon\u201d, she said. Supreme court justice Brett Kavanaugh said the refund process is likely to be a \u201cmess\u201d. Trump on Friday dismissed the idea of any refunds. \u201cIt\u2019s not [being] discussed. We\u2019ll end up being in court for the next five years.\u201d<\/p>\n
The UK\u2019s Department for Business and Trade (DBT) said the ruling did not affect the preferential deal the UK negotiated on steel, automobiles (10% down from 27.5%) and pharma, which has zero tariffs compared with 15% in the EU.<\/p>\n
\u201cThe UK enjoys the lowest reciprocal tariffs globally, and under any scenario we expect our privileged trading position with the US to continue. We will work with the administration to understand how the ruling will affect tariffs for the UK and the rest of the world,\u201d said a spokesperson for the DBT.<\/p>\n
The European Commission trade spokesperson, Olof Gill, said it was analysing the ruling \u201ccarefully\u201d.<\/p>\n
\u201cBusinesses on both sides of the Atlantic depend on stability and predictability in the trading relationship. We therefore continue to advocate for low tariffs and to work towards reducing them,\u201d he added.<\/p>\n
The German confederation of industries, BDI, said the ruling sent a \u201cstrong signal for the rules-based trade order\u201d.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
What did the court ruling say? The court ruled that Trump exceeded his authority and should have got congressional approval for the tariffs, which he announced on what he dubbed \u201cliberation day\u201d last April. The tariffs, set at varying rates, covered dozens of countries from war-torn Syria and impoverished Lesotho to the UK, China, Canada,<\/p>\n","protected":false},"author":1,"featured_media":44846,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[160,6344,159,72,71,6130],"class_list":{"0":"post-44845","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-court","9":"tag-happen","10":"tag-supreme","11":"tag-tariffs","12":"tag-trumps","13":"tag-verdict"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/44845","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=44845"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/44845\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/44846"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}