The Supreme Court on Friday struck down a key element of President Trump’s trade policy, ruling that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to levy tariffs. In response, the Trump administration announced plans to implement a “10% global tariff” on imports, in addition to existing tariffs.
Supreme Court Ruling and Administration Response
The 6-3 ruling was described by President Trump as “deeply disappointing.” The administration intends to replace the tariffs struck down by the court with measures authorized under Section 122 of the Trade Act of 1974, and will initiate trade investigations under Section 301. According to the president, these alternative measures will “actually increase” the amount of money coming into the country.
Despite the Supreme Court’s decision, the administration stated that “all national security tariffs” implemented under Section 232 and Section 301 “remain fully in place and in full force and effect.” These tariffs, which cite national-security concerns, apply to a range of products including copper, semiconductors, automobiles, and wood products.
Currently in effect are Section 232 tariffs, including 50% levies on semi-finished copper products, 25% levies on certain imported semiconductors – including Nvidia’s (NVDA) H200 chips – and automobile tariffs, including 25% levies on trucks and 10% levies on buses.
Frequently Asked Questions
Which tariffs were struck down by the Supreme Court?
The Supreme Court struck down tariffs implemented under the International Emergency Economic Powers Act (IEEPA).
What will replace the tariffs struck down by the court?
The administration will implement a 10% global tariff authorized under Section 122 of the Trade Act of 1974, and will start trade investigations under Section 301.
Are all tariffs removed as a result of the Supreme Court ruling?
No, tariffs implemented under Section 232 and Section 301, which cite national-security concerns, remain in place.
How will these changes impact international trade and the U.S. Economy in the coming months?
