In a brazen move that defies the authority of the US Supreme Court, President Donald Trump has announced a unilateral increase of global tariffs from 10% to 15%. This comes just a day after the nation's highest court struck down his previous sweeping import taxes, ruling that Trump had overstepped his powers.
What this really means is that Trump is doubling down on his protectionist economic agenda, using a never-before-used trade law to circumvent the Supreme Court's decision and impose even higher tariffs on goods from America's trading partners around the world. The bigger picture here is that this sets up a constitutional showdown between the executive and judicial branches, further eroding the system of checks and balances that underpins US democracy.
Raising Tariffs to the Legal Limit
In a post on his Truth Social platform, Trump announced that "effective immediately," he would be "raising the 10% Worldwide Tariff on Countries... to the fully allowed, and legally tested, 15% level". He cited a "thorough, detailed, and complete review" of the Supreme Court's "ridiculous, poorly written, and extraordinarily anti-American decision" as the rationale for the increase.
This move comes after the Supreme Court, in a 6-3 ruling, found that Trump had overstepped his authority by using a 1977 law called the International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs. The court said the president needed Congressional approval to impose such trade taxes.
Circumventing the Courts
Undeterred, Trump is now turning to another obscure trade law, Section 122 of the 1974 Trade Act, to raise tariffs to the maximum 15% level allowed. This law gives the president temporary authority to implement tariffs without Congressional oversight, though it's unclear how long the 15% levy can remain in place.
By using this legal maneuver, Trump is essentially thumbing his nose at the Supreme Court's ruling, which had been hailed as a major victory for businesses and US states that challenged his tariff policies. The president's defiant move will likely spark fresh legal battles and deepen the constitutional crisis over the balance of power on trade policy.
As a former trade negotiator told the BBC, Trump's decision to raise tariffs to the maximum allowed "isn't a surprise" given his track record. However, the expert noted that they "expected the president to do it earlier" in response to the Supreme Court ruling.