In a significant turn of events, President Trump announced during a press briefing that his administration plans to impose a “10% global tariff” in response to the Supreme Court’s recent decision to strike down his extensive tariff regime. The ruling, decided by a 6-3 vote, determined that the International Emergency Economic Powers Act (IEEPA) does not grant the president the authority to impose tariffs, marking a notable setback for the administration’s economic policy framework.
Expressing his disappointment, Trump characterized the Supreme Court’s decision as “deeply disappointing.” He emphasized that, despite the setback, the administration is prepared to pivot from the tariffs previously justified under the IEEPA. Instead, they will now implement a global tariff based on Section 122 of the Trade Act of 1974, which he claims will be supported by legal frameworks that the court has recognized.
Additionally, Trump announced the initiation of several trade investigations under Section 301. He claimed that these alternative measures would not only comply with legal standards set by the court but may also result in an increase in revenue for the United States. “These methods, statutes, practices, and authorities are even stronger than IEEPA tariffs,” he asserted, indicating a calculated shift in strategy.
The president also reassured stakeholders that the “all national security tariffs” imposed under Section 232 and Section 301 will remain intact. The Supreme Court’s ruling does not affect the tariffs implemented under Section 232 of the Trade Expansion Act of 1962, which are grounded in national security concerns. This means that a variety of import duties will continue to be enforced, affecting essential products such as copper, semiconductors, automobiles, and cabinetry.
Under these Section 232 tariffs, specific levies remain significant: 50% on semi-finished copper products, 25% on certain imported semiconductors—including critical components like Nvidia’s H200 chips—and varying rates on automobiles, with tariffs of 25% on trucks and 10% on buses.
As the administration charts a new course in its trade policy, it remains to be seen how these developments will impact both domestic markets and international trade relations. The move signals a determined effort by the Trump administration to navigate existing legal hurdles while continuing to pursue its economic objectives.
