In a significant setback for President Donald Trump, the Supreme Court of US has struck down the tariffs imposed by Donald Trump on other countries. In a 6-3 decision, the court reviewed tariffs enacted under the International Emergency Economic Powers Act. The copy of order of Supreme Court is given below.
What is the International Emergency Economic Powers Act
The International Emergency Economic Powers Act is a United States federal law authorizing the president to regulate international commerce after declaring a national emergency in response to any unusual and extraordinary threat to the United States, which has its source in whole or substantial part outside the United States.
What US Supreme Court said on Tariff?
Chief Justice John Roberts said that the US Constitution clearly gives the power to levy taxes, including tariffs, to Congress. He explained that the people who wrote the Constitution did not give any part of this taxing power to the President or the executive branch.
Roberts said that the International Emergency Economic Powers Act does not mention tariffs or import duties anywhere in the law. Because of this, the Supreme Court decided that the law does not give the President the power to impose tariffs.
He explained that the court’s job was only to decide whether the law’s wording about “regulating importation” also includes the power to impose tariffs. The court said it does not. Roberts added that if Congress wanted to give the President the special and strong power to levy tariffs under this law, it would have clearly written that in the law, as it has done in other trade laws.
Referring to earlier Supreme Court decisions, Roberts said that if a President wants to use broad tariff powers, he must show clear permission from Congress. In this case, that clear permission was not given.
The majority of the court also said that when Congress gives tariff powers, it uses clear words like “duty,” “tariff,” or “surcharge.” It also usually sets limits, such as the rate, time period, and conditions. But the emergency powers law only talks about regulating imports. It does not clearly give the power to impose taxes.
What US President Donald Trump said?
US President Donald Trump strongly criticized the Supreme Court during a press conference. He called the justices who ruled against him a “disgrace” and described them as “fools and lapdogs.”
Two of the justices who voted against him were appointed by Trump himself. This made the decision more personal for him. He said he felt “ashamed” of some members of the Supreme Court because they struck down his tariff policy. He also openly criticized some of the current justices whom he had nominated earlier.
Even after this setback, Trump said he would try to bring back the tariffs. He said he could use presidential powers under other federal laws, but he did not give full details.
Trump also said he has “very powerful alternatives” to impose tariffs. However, he admitted that using other laws would be more complicated and take more time compared to his original plan.
10% Global Tariff
US President Donald Trump announced he will sign an executive order imposing a 10% global tariff under Section 122 of the 1974 Trade Act, marking a significant escalation in US trade policy.
Can Trump still impose tariffs?
As confirmed by US President, he can still impose tariffs via several other methods. The team is exploring the possibilities. President Donald Trump said he has “very powerful alternatives” to levy tariffs after citing different federal law sections.
Download Court Order PDF (This PDF is available for Premium Users Only. Click here to join premium)
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