Trump Announces 10% Global Tariff After Supreme Court Setback

US President Donald Trump has announced that he will sign an executive order imposing a 10% global tariff, hours after the US Supreme Court struck down his reciprocal tariff regime as unlawful. The move marks a sharp escalation in trade policy tensions and follows a significant judicial rebuke of one of his key economic initiatives.

Speaking at a press conference, Trump said the new tariff would be imposed under Section 122, in addition to existing duties. He also confirmed the initiation of investigations under Section 301 and other provisions to counter what he described as unfair trading practices.

Supreme Court Strikes Down Tariff Regime

In a 6-3 ruling, the US Supreme Court invalidated tariffs introduced under emergency powers, including broad “reciprocal” duties applied to multiple countries. The Court held that the International Emergency Economic Powers Act does not authorise the president to impose tariffs without congressional approval.

Chief Justice John Roberts, writing for the majority, stated that the Constitution vests the power to levy taxes exclusively in Congress. The verdict represents a substantial setback to the administration’s trade strategy.

Trump’s Response and Alternative Measures

Reacting strongly to the ruling, Trump termed the decision “deeply disappointing” and indicated that alternative statutory routes would be used to restore or expand tariff measures. He suggested that new mechanisms could potentially generate even higher revenues.

The president reiterated his claim that foreign governments bear the cost of tariffs. However, economic assessments indicate that American importers and businesses largely absorb the duties, often passing costs on to consumers.

Economic Impact and Revenue Projections

Recent analysis linked to a major US bank showed that tariff payments by mid-sized American firms have tripled over the past year. These firms collectively employ around 48 million people. To offset higher costs, many have raised prices, curtailed hiring or accepted reduced profit margins.

The Congressional Budget Office had projected that existing tariffs could raise around $3 trillion over a decade. However, this would still be insufficient to eliminate long-term budget deficits.

Important Facts for Exams

• The US Constitution grants Congress the power to levy taxes and tariffs.
• The International Emergency Economic Powers Act limits executive authority in trade matters.
• Section 301 of the US Trade Act addresses unfair foreign trade practices.
• Tariffs are typically paid by importers, not exporting governments.

Trade Policy Uncertainty Ahead

The Supreme Court has not clarified how potential refunds of previously collected tariffs may be handled. With fresh executive action anticipated, businesses and global markets face continued uncertainty over the direction of US trade policy and its broader economic implications.