USA Monitoring Desk Islamabad
President Donald Trump’s sweeping global tariffs have been struck down by the US Supreme Court, in a major blow to the president’s economic agenda.With a 6-3 majority, the Supreme Court rules Trump exceeded his authority when he imposed tariffs via a law reserved for national emergencies.
The court’s decision represents a rare check on this president’s broad use of executive authority – read our North America correspondent’s snap analysis. The ruling applies to his so-called “Liberation Day” tariffs, but not individual tariffs he’s imposed on specific countries or products
Trump, a longtime proponent of tariffs, argues the taxes on goods imported into the US will boost American manufacturing. Wall Street responds quickly and positively to the court’s ruling in early trading.
Chief Justice John Roberts delivered the main opinion in today’s decision, BBC reported.
In the ruling, Roberts said if the Trump administration was allowed to prevail with its tariffs agenda it “would replace the longstanding executive-legislative collaboration over trade policy with unchecked Presidential policymaking”.
“Accordingly, the President must ‘point to clear congressional authorization’ to justify his extraordinary assertion of the power to impose tariffs. He cannot.”
Mr. Theo Leggett, International business correspondent said, The Supreme Court – with, let’s not forget, a conservative majority – has struck down the legal justification for a large portion of the so-called reciprocal tariffs, as well as measures brought in against Canada, Mexico and China, ostensibly in response to the influx into the US of illegal drugs such as fentanyl.
These import taxes were introduced under the International Emergency Economic Powers Act. But the court ruled that the Act did not authorise measures which were “unbounded in scope, amount and duration”.
Trump Terms the S.C Ruling Disappointing ! Announces New 10 % Levy on Global Imports
However, this is not the only legal avenue the administration has used to impose extra tariffs since Trump took office. There are other laws which he could use to re-impose them if he wishes.
Given the president’s clear enthusiasm for tariffs as a negotiating tool, we are unlikely to see a big change in policy from the White House.
That said, those other methods may require congressional approval or investigations by the US Department of Commerce – so would probably take longer. It’s not yet clear what will happen in terms of refunds for tariffs that have already been paid by US importers.
So while the ruling gives certainty in one sense – the president cannot use this particular method to impose the tariffs he wants – it creates uncertainty in other ways.
Why did Trump enact so many tariffs?
Correspondent Anthony Zurcher shares , Donald Trump had been warning for months that a Supreme Court decision curtailing his ability to impose tariffs would be an “economic and national security disaster” with “catastrophic” consequences. A six-justice majority of the Supreme Court, in ruling against the president today, didn’t care much about his concerns.
Congress, not the president, has the power to impose tariffs, the justices held. And nothing in the law that the president cited in his legal defence, the Emergency Economic Powers Act of 1977, delegated such sweeping powers to Trump.
The court’s decision represents a rare check on this president’s broad use of executive authority. A majority of the justices over the past year have shown a willingness to allow Trump to press ahead with his agenda, particularly on immigration and reshaping the federal government, even as legal challenges work their way through the court system.
This case, considered on an expedited basis, slams the door on one such expansive use of presidential authority.
With several other major cases involving controversial uses executive power – such as efforts to end birthright citizenship and to dismiss a Federal Reserve governor based on alleged improprieties – this may not be Trump’s only setback in the coming months.
