President Donald Trump has implemented an additional 10 percent tariff on imports to the United States following a Supreme Court ruling that invalidated many of his broad and sometimes capricious duties, dealing a harsh blow to his key economic strategy. Trump signed the tariff order in the Oval Office and announced its almost immediate effect on social media, after spending the past year imposing various rates to incentivize or penalize countries, both allies and adversaries.
The new tariff is set to come into force on February 24 for 150 days, with exceptions granted for industries under separate investigations, such as pharmaceuticals, and goods entering the US under the US-Mexico-Canada agreement, as outlined in a White House briefing. Countries that had negotiated tariff agreements with Trump’s administration will now face a 10 percent duty, irrespective of any higher levels they had previously accepted, according to the White House.
Although the Supreme Court ruling did not impact sector-specific tariffs imposed by Trump on steel, aluminum, and other goods, ongoing government investigations could lead to additional sectoral tariffs. This marked Trump’s most significant setback at the Supreme Court since his return to the White House over a year ago, despite the court generally expanding his authority.
The court’s ruling emphasized that the law Trump had relied on, the International Emergency Economic Powers Act of 1977, did not grant the President the authority to impose tariffs. Chief Justice John Roberts highlighted that the Act made no mention of tariffs or duties, indicating that if Congress intended to empower the President to levy tariffs, it would have done so explicitly.
Following the decision, stock prices on Wall Street saw a modest increase, with business groups largely supporting the ruling for providing much-needed certainty to companies. The University of Pennsylvania’s Penn Wharton Budget Model projected potential refunds of up to $175 billion resulting from the court’s decision on tariffs.
While some politicians called for immediate refunds for Americans affected by the tariffs, others cautioned that there might not be a legal mechanism for consumers and small businesses to recover the funds they had already paid. Close US trade partners like the European Union, Britain, and Canada are closely monitoring the situation, with Canada preparing for potential trade pressures and disruptions following the Supreme Court ruling.
