US Supreme Court invalidates Trumps global tariffs policy

US Supreme Court Strikes Down President Trump’s Tariffs

The United States Supreme Court has ruled against US President Donald Trump’s sweeping tariffs, striking down one of his most contentious assertions of authority. The decision, made on Friday, comes after Trump used tariffs as a key economic and foreign policy tool.

In 2019, Trump initiated a global trade war, which has led to alienation among trading partners, affected financial markets, and caused global economic uncertainty. The tariffs were imposed under the International Emergency Economic Powers Act (IEEPA), a law meant for use in national emergencies.

The Supreme Court’s 6-3 ruling, authored by Chief Justice John Roberts, upheld a lower court’s decision that Trump exceeded his authority in using IEEPA to impose the tariffs without congressional approval. The majority found that the Constitution gives Congress, not the president, the power to issue taxes and tariffs.

The justices cited a prior Supreme Court ruling, stating that “the president must point to clear congressional authorization” to justify extraordinary assertions of power. They added that “he cannot.” The court’s decision has significant implications for the global economy.

The ruling affects Trump’s tariff agenda, which was forecast to generate trillions of dollars in revenue for the US over the next decade. However, with this decision, companies may be eligible for refunds on the billions they have collectively paid in tariffs. The process of returning these funds is likely to be complicated.

The Supreme Court’s decision will also limit Trump’s ability to threaten tariffs against any country without congressional approval. According to Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security, this ruling “definitely repudiates Trump’s tariff agenda” and forces him to rely on other tools that require more public comment period and Congressional authorization.

The court’s decision has been met with various reactions from economists and experts. The US Constitution grants Congress the authority to issue taxes and tariffs, but Trump used IEEPA to impose the tariffs without approval.

Source: Al Jazeera