The US Supreme Court rejects Trump’s tariffs, starting from February 24th 10% tariffs for everyone

US President Donald Trump signed measure to impose 10% global tariffsafter a few hours before the Supreme Court rejected tariffs introduced last summer declaring the use of emergency powers illegitimate. “It is my great honor to have just signed, from the Oval Office, a global 10% tariff on all countries, which will go into effect almost immediately,” Trump wrote on his Truth social network.
The new trade measure, the White House says, will come into force starting Tuesday 24 February. US trading partners that reached tariff agreements with the Trump administration will also now have to pay a 10% tariff. The EU said it was waiting for the US administration to clarify what measures it intends to take in response to this ruling.

Tariffs down

US trading partners that reached tariff deals with the Trump administration will now have to pay a 10% tariff, despite previously agreed upon higher levels, the White House said on Friday. “This is, however, a temporary measure as the administration will address other competent authorities to apply more appropriate tariffs or pre-negotiated,” a White House official told AFP.

Maximum 150 days

The new provision will last a maximum of 150 days, it was adopted using the Section of Trade Act del 1974a never-before-implemented trade law that allows the president to impose tariffs temporarily to address “large and severe U.S. balance of payments deficits” or other situations presenting “fundamental problems in international payments.” To impose tariffs, Trump had so far resorted to a 1977 law, the International Emergency Economic Powers Act which gives the president broad powers over international economic transactions in the event of a national emergency. The influx of drugs into the United States and the “large and persistent” trade deficit have both been used by the US president to justify the use of emergency measures. However, in a 6-3 decision, the high court ruled that that law does not authorize Trump to impose the tariffs.

The White House’s economic agenda has been hit

The Supreme Court’s ruling struck one of the pillars of the White House’s economic agenda. The ruling calls into question the legality of the customs tariffs announced on the occasion of ‘Liberation Day’, as well as the duties imposed on imports from China, Mexico and Canada. A decision that Trump called it “a disgrace.”Trump attacked the Supreme Court justices, also speaking about possible foreign influences on voting. Among the opposing opinions were also those of two judges he appointed during his first term in the White House. “What happened with the two United States Supreme Court justices that I have appointedlike it or not, never seems to happen with Democrats. They vote against Republicans, and never against themselves, no matter how good our arguments are,” Trump notes.

Goods exempted

Some goods will not be subject to the temporary import tariff due to the needs of the U.S. economy or to ensure that the tariff more effectively addresses fundamental international payments problems facing the United States. Tariffs, the White House underlines, “will continue to be a fundamental tool at President Trump’s disposal” to “protect American companies and workers, bring back domestic production, reduce costs and raise wages”.

The judges did not specify what will now happen to them over $130 billion in fees already collected. As of Dec. 14, the federal government has collected $134 billion in tariff revenue, according to data from the U.S. Customs and Border Protection Agency and recent filings by the agency with the U.S. International Trade Court. Some Democrats have already asked Trump to cover the cost caused by the tariffs in their territories.

Il governor of Illinois, Jay Robert Pritzker, he wrote to the president of the USA sending him an 8.6 billion invoice of dollars with which he quantifies the damages suffered by his fellow citizens from the application of duties. “Your tariff taxes have devastated farmers, infuriated our allies, and sent food prices skyrocketing. On behalf of the people of Illinois, I am seeking reimbursement of $1,700 for each family. There are 5,105,448 families in my state, which brings the total damages owed by you to $8,679,261,600,” Pritzker writes. While the governor of California California Gavin Newsom said: “For over a year Donald Trump has been illegally taxing groceries, furniture and cars. It’s time to ask for a refund.”

I am critical of the tones used by the president Wall Street Journalin an editorial we read that Trump “owes the Supreme Court an apologyto the individual judges he has defamed and to the institution itself”. The US financial newspaper speculates that “Trump will undoubtedly not offer” an apology. The WSJ’s assessment is that “his rant in response to his tariff defeat at the Court” was “probably the worst moment of his presidency”. CNN instead notes that the Court’s decision “could have enormous consequences not only for the economy and foreign relations, but potentially also for this year’s mid-term elections”.