Trump Imposes New Tariffs Following Supreme Court Ruling
Washington D.C. – President Trump responded to a Supreme Court decision striking down his broad authority to impose tariffs by announcing a new 10 percent global tariff, which was quickly raised to 15 percent, effective immediately. The move introduces fresh uncertainty into global trade and comes after the Court ruled Friday that the President had overstepped his authority in ordering tariffs on nearly all U.S. Imports.
The Supreme Court’s ruling centered on tariffs imposed using a 1970s emergency statute, a practice the court found to be an overreach of presidential power. However, the decision does not affect tariffs enacted under Section 232 of the Trade Expansion Act of 1962, which target specific products deemed to threaten national security. These include levies on steel, semiconductors, and aluminum, and remain in effect, according to CNBC.
The federal government has been collecting approximately $30 billion in tariffs each month, four times the amount collected before Trump returned to the White House. Despite raising tariff rates to their highest level in nearly a century, import taxes still represent just over 5% of overall government revenue as of January. Exemptions for goods like coffee and bananas, as well as companies shifting production to countries with lower tariff rates, have limited the potential revenue, NPR reported.
A working paper from Harvard University professor Gita Gopinath and University of Chicago economist Brent Neiman indicates that U.S. Importers are bearing nearly the entire cost of Trump’s tariffs, rather than foreign suppliers as the administration has claimed. Some importers have absorbed these costs, resulting in lower profits. In 2024, 12% of U.S. Imports originated from China, a figure that decreased to approximately 8% by September of last year.
The automotive industry continues to face billions of dollars in tariff costs, depending on the origin of imported parts and vehicles. The Supreme Court’s decision and the subsequent tariff announcements highlight the ongoing complexities and potential disruptions in international trade, impacting businesses and consumers alike. The situation remains fluid, with the possibility of further changes in the coming days, as noted by HLN.
The ruling underscores the delicate balance between presidential authority and congressional oversight in trade policy, and the potential for rapid shifts in the global economic landscape.
