Trump Raised Global Tariffs After Supreme Court Setback

Under the protection of another trade law, the president raised tariffs to 15%, the permitted limit, reigniting trade tensions and the debate on the issue.

Negocios Now Editorial Staff

US President Donald Trump announced on Saturday an increase in global import tariffs to 15%, just one day after the Supreme Court ruled that a substantial portion of the previously imposed tariffs were illegal.

The high court’s ruling determined that the administration had exceeded its authority by using the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs without congressional approval.

The US Constitution grants the legislative branch the power to establish taxes and tariffs, and the Court held that the executive branch could not rely on an emergency declaration to apply widespread trade tariffs.

In immediate response, the White House invoked another legal basis: Section 122 of the Trade Act of 1974. This provision allows the president to impose temporary tariffs of up to 15% for up to 150 days without prior congressional approval, as a mechanism to address balance of payments imbalances or critical trade situations.

Initially, following the court ruling, Trump had announced a 10% tariff. However, in his most recent statement, he decided to raise it to 15%, the maximum allowed under this new legal authority.

The Administration argues that the measure seeks to protect the U.S. economy from persistent trade deficits and practices considered unfair by other countries.

The decision has generated unease in the markets and concern among key trading partners. European business representatives have warned that the increase could make exports to the United States more expensive, while European Union officials have requested clarity on the scope and duration of the measure.

Economic analysts also point out that these types of tariffs are usually partially passed on to consumers, raising prices on imported goods.

Domestically, the move reflects the administration’s intention to maintain a firm trade policy despite the legal setback, resorting to various legal instruments to uphold its protectionist strategy.

Nevertheless, international trade experts warn that the legal debate could continue if the application of this new regulatory framework is challenged.

Read article in Spanish / Leer artículo en español: https://negociosnow.com/trump-elevo-los-aranceles-globales-tras-reves-en-la-corte-suprema/