In a major setback to US President Donald Trumpโs signature trade policy, the US Supreme Court on Friday struck down most of his sweeping tariff measures. The US apex court stated that the President did not possess the authority under the 1977 International Emergency Economic Powers Act (IEEPA) to impose extensive import duties on goods from nearly all US trading partners. The ruling is expected to have wide-ranging consequences for global trade, businesses, consumers, inflation trends and household finances across the country.
The verdict marks a notable shift from a series of recent wins for Trump at the Supreme Court. Over the past year, the justices had largely sided with the administration in interim orders, allowing policies such as a ban on transgender troops serving in the military, granting the United States DOGE Service access to sensitive data, and enabling significant cuts to the Education Department while legal challenges continued, The Washington Post reported.
What options does Trump have now?
Trump cannot challenge the court directly, but he can use other avenues to impose tariffs. Trump’s party, the Republicans, has a majority in Parliament, so they can get a new law passed that gives him the power to impose these tariffs.
Moreover, the court has declared the use of the Emergency Act of 1977 (IEEPA) invalid, so now Trump can impose tariffs under Section 301 in the name of national security threat. This section has been used earlier on steel and aluminum. Apart from this, under Section 301 of the Trade Act of 1974, Trump can impose tariffs citing unfair trade practices. This section has already been used on China.
Financial implications of the ruling are substantial
The financial implications of the ruling are substantial. The tariffs in question cover trillions of dollars in trade, and the US government collected nearly USD 134 billion in levies through December 14 under the contested authority, The Washington Post reported.
The Supreme Court ruling comes despite a series of short-term wins on the court’s emergency docket that have allowed Trump to push ahead with extraordinary flexes of executive power on issues ranging from high-profile firings to major federal funding cuts.
The Republican president has been vocal about the case, calling it one of the most important in US history and saying a ruling against him would be an economic body blow to the country. But legal opposition crossed the political spectrum, including libertarian and pro-business groups that are typically aligned with the GOP. Polling has found tariffs aren’t broadly popular with the public, amid wider voter concern about affordability.
Also Read:ย
US Supreme Court strikes down Trump’s global tariffs 6-3 in big decision