SCOTUS strikes down most of Trump's tariffs; Trump vows new "global tariff" - National & International News -

Supreme Court strikes down most of Trump’s tariffs; Trump vows new “global tariff”

In a 6-3 decision, the US Supreme Court declared that Trump’s sweeping program of global “emergency” tariffs imposed last year were unlawful. This is perhaps the most significant defeat delivered for Trump by the Supreme Court since he returned to the White House last year.

Today’s ruling did not strike down all of Trump’s tariffs – only the ones for which Trump claimed authority under the International Emergency Economic Powers Act (IEEPA) of 1977. The court found that Trump’s use of IEEPA exceeded the authority granted to the president by Congress. Chief Justice John Roberts wrote that Trump must seek further authority from Congress to impose tariffs based on this justification.

Trump received the news while meeting with governors at the White House. After reading a note passed to him, Trump reportedly muttered, “this is a disgrace” before leaving the room for several minutes, according to witnesses. Later at a news conference, Trump said he as “ashamed of certain members of the court”. Two of the justices he appointed in his last term, Amy Coney Barrett and Neil Gorsuch, ruled against him in this case. Trump went on to accuse the justices of being “swayed by foreign interests”.

Trump also announced a new “global” 10% tariff, this time under Section 122 of the Trade Act of 1974. This allows the president to impose up to 15% tariffs for up to 150 days. Further extension requires Congressional approval.

The cost of the tariffs

The court’s ruling made no determination as to how the $134 billion collected from importers under the IEEPA tariffs should be refunded to companies. Over 1,000 importers had already sued for refunds before today’s ruling, and more suits are now likely.

Trump has touted tariffs as a key component of his economic agenda to boost domestic manufacturing. He has claimed that the tariffs would be paid by foreign countries. In reality, American companies and consumers have borne the brunt of the tax burden. American manufacturers have had to pay higher duties for raw materials, machine components and other inputs. These costs are passed on to American consumers who are now paying more for many different types of goods, whether they are manufactured abroad or at home. As a result, inflation is also creeping upward. Polls show that a majority of Americans disapprove of how Trump has handled tariffs.