Immediate Tariff Hike Amid Legal Challenge
US President Donald Trump announced an immediate increase in global tariffs from 10% to 15%, just a day after the Supreme Court ruled that his broad use of emergency powers to impose tariffs exceeded his authority. Trump framed the move as necessary to protect American interests, arguing that the court decision only invalidated one specific use of the International Emergency Economic Powers Act (IEEPA) and does not block other legal avenues for imposing duties.
Navigating Legal Limits
The Supreme Court’s 6–3 ruling emphasized that the Constitution gives Congress, not the president, the power to levy taxes, including tariffs. Chief Justice John Roberts noted that taxing authority was never placed in the executive branch. In response, the White House plans to use other tools, including Section 301 and Section 122 of the Trade Act of 1974, which allow targeted investigations and temporary import surcharges, though both come with tighter restrictions and time limits compared with IEEPA.
Ongoing Disputes and Economic Impact
Trump’s tariff strategy has sparked lawsuits from states and companies claiming the emergency powers law does not authorize such broad import taxes. While some tariffs remain in place, questions about potential refunds and ongoing legal challenges continue. Critics point to public concern over rising costs, while the administration insists it will explore all permitted avenues to maintain and enforce trade protections.
