The United States Supreme Court ruled on Friday that President Donald Trump could not use national emergency powers to levy tariffs during peacetime.
US President Donald Trump announced a 10% global tariff on Friday following the Supreme Court’s ruling striking down his authority to levy tariffs under the International Emergency Economic Powers Act (IEEPA).
Trump was critical of the Supreme Court’s decision, calling the decision “ridiculous” at Friday’s press conference, and said that he will levy the tariffs under different legal methods, including the Trade Expansion Act of 1962 and the Trade Act of 1974. Trump said:
“Effective immediately. All national security tariffs under Section 232 and Section 301 tariffs remain fully in place. And in full force and effect. Today, I will sign an order to impose a 10% Global tariff under Section 122 over and above our normal tariffs already being charged.”
Trump’s tariffs have repeatedly caused severe downturns in markets considered high risk, including crypto and equities, as the threat of tariffs fuels uncertainty and shakes investor confidence.
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The Supreme Court strikes down Trump’s authority to levy tariffs under emergency powers
Trump levied a 25% tariff on most goods coming in from Canada and Mexico, and a 10% tariff on goods coming in from China under the IEEPA, framing both tariffs as a response to national security threats.
An influx of drugs from foreign countries created a “public health crisis,” according to Trump, while trade deficits with China threatened the industrial manufacturing base in the US, he alleged.
However, the Supreme Court rejected both premises as national security threats under the IEEPA and said that the Executive Branch does not have the authority to levy tariffs under the IEEPA during peacetime.
“In IEEPA’s half-century of existence, no president has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope,” the ruling said.
“Article I, Section 8, of the Constitution specifies that ‘The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises.’ The Framers recognized the unique importance of this taxing power,” the Supreme Court ruled on Friday.
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