International NewsTrump defies court ruling, announces 10% global tariff

Trump defies court ruling, announces 10% global tariff

WASHINGTON, FEB 20 (REUTERS/AGENCIES):

U.S. President Donald Trump on Friday announced that he would impose a 10% global tariff for 150 days under Section 122 of the Trade Act of 1974, seeking to replace some of his emergency duties that were struck down by the U.S. Supreme Court.
Trump said the new tariffs would be imposed over and above existing duties. Section 122 authorises the president to levy tariffs of up to 15% for a maximum of 150 days to address “large and serious” balance of payments issues. The provision does not require a formal investigation or extensive procedural steps.
The announcement follows a 6-3 Supreme Court ruling that invalidated Trump’s sweeping global tariffs imposed under the International Emergency Economic Powers Act, including the broad “reciprocal” tariffs he had levied on nearly every country. The court held that Trump had overstepped his authority under the emergency powers law.
In its majority opinion, the court said the Constitution clearly grants Congress the power to impose taxes, including tariffs. “The Framers did not vest any part of the taxing power in the Executive Branch,” Chief Justice John Roberts wrote. The ruling marked a significant setback for Trump on a key element of his economic agenda. Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented. Kavanaugh wrote that the tariffs “may or may not be wise policy,” but argued that “as a matter of text, history, and precedent, they are clearly lawful.”
Defending his move, Trump said, “We have alternatives, great alternatives. Could be more money. We’ll take in more money and we’ll be a lot stronger for it.” He also announced the initiation of several investigations under Section 301 of U.S. trade law into alleged unfair trade practices by other countries and companies, saying the steps were necessary to protect American interests.
While the administration’s pivot to other statutory tools had been widely anticipated, the newly announced 10% tariff can remain in effect only for 150 days. Section 301 investigations typically take months to complete, potentially delaying longer-term trade actions.
The decision represents the first major piece of Trump’s broader policy agenda to come before the nation’s highest court, which he helped shape through three conservative appointments during his first term.

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