The United States Supreme Court has ruled that tariffs imposed by former President Donald Trump under emergency orders are illegal, striking down a key element of his economic policy. The decision, which infuriated Trump, found that the International Emergency Economic Powers Act does not authorize the president to impose tariffs.
The tariffs in question included a 10% levy on Australian imports, among others, which were implemented under declarations of a public health crisis related to illegal drugs. The Supreme Court upheld a prior ruling by the US Court of International Trade that deemed these tariffs unlawful.
However, the ruling does not affect tariffs on specific products such as aluminum, steel, copper, wood, vehicles, auto parts, and furniture, which were imposed under different legislation. Experts suggest that future tariffs will likely target products rather than countries.
In response, Trump signed an order for a new 10% tariff on many foreign imports under a trade law allowing tariffs up to 15% for 150 days. He vowed to find workarounds, including fast-tracked investigations under Section 301 of the Trade Act, which could lead to tariffs on countries found to be treating the US unfairly.
