Trump imposes new 10% global tariff after Supreme Court strikes down emergency powers
The U.S. Supreme Court ruled 6-3 that President Donald Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose tariffs was unconstitutional. The Court declared that only Congress holds tariff authority under Article I, Section 8 of the Constitution, invalidating billions in tariffs on China, Canada, Mexico and others.
Trump immediately announced a new 10% global tariff under Section 122 of the Trade Act of 1974, which allows temporary tariffs to address trade imbalances. The new tariff excludes Canada, Mexico, pharmaceuticals, agricultural products and critical minerals but will take effect within days.
The Supreme Court ruling creates market uncertainty, potentially destabilizing supply chains and financial markets. Legal experts warn Trump’s unilateral trade power is weakened, though he retains other tools like Section 301 investigations.
Trump publicly criticized Justices Neil Gorsuch and Amy Coney Barrett (both his appointees) for siding against him, calling the decision “ridiculous” and an “embarrassment.” He vowed to continue his trade war through alternative legal mechanisms, insisting tariffs are critical for national security.
The White House confirmed existing Section 232 (national security) and Section 301 tariffs remain in place. U.S. Trade Representative Jamieson Greer hinted at more tariffs from ongoing trade probes, signaling Trump’s economic pressure campaign is far from over.
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