The U.S. Supreme Court’s recent ruling against President Donald Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs has triggered a swift response from the White House, with the announcement of a new 10 percent global duty levied under Section 122 of the Trade Act of 1974. The decision, delivered on Friday, , marks a significant setback for Trump’s economic agenda and injects considerable uncertainty into the global trade landscape.
The court found that the President had overstepped his executive authority by utilizing IEEPA – originally intended for responding to national emergencies – to justify broad tariffs on imports from nearly all countries. Chief Justice John Roberts, writing for the majority, emphasized that the President lacked clear congressional authorization for such a sweeping action. “IEEPA’s grant of authority to ‘regulate … importation’ falls short,” Roberts wrote in the court’s 6-3 opinion. “IEEPA contains no reference to tariffs or duties.”
The ruling potentially opens the door to billions of dollars in refunds for businesses and states that challenged the tariffs, a prospect Trump dismissed as unlikely, predicting years of further legal battles. Justice Brett Kavanaugh, in a dissenting opinion, highlighted the potential financial implications, noting that refunds of tariff revenue could have “significant consequences for the U.S. Treasury.” More than 60 percent of total tariff revenue in stemmed from duties imposed under IEEPA, according to the Cato Institute.
However, the Trump administration has already moved to circumvent the court’s decision. Announcing the new 10 percent tariff on Friday, Trump framed it as a necessary measure to protect the U.S. Economy, asserting that Section 122 provides the authority to impose such duties. “In order to protect our Country, a President can actually charge more TARIFFS than I was charging in the past under the various other TARIFF authorities,” Trump stated on his Truth Social platform.
Experts caution that Section 122 offers a more limited and temporary avenue for tariffs. As Foreign Policy’s Keith Johnson notes, the authority granted by Section 122 is narrower in scope and duration, requiring prior investigation and lasting only 150 days before requiring congressional approval. This contrasts sharply with the open-ended nature of the tariffs imposed under IEEPA.
The Supreme Court’s decision and the subsequent imposition of new tariffs have prompted immediate reactions from international partners. The European Union has announced an emergency meeting on , to reassess its trade agreement with the U.S., which, if ratified, would eliminate tariffs on most goods while imposing a 15 percent duty on EU products. The United Kingdom has indicated it will seek clarification on the ruling’s impact on existing tariffs, while Canada stressed that the decision reinforces its position that the IEEPA tariffs were unjustified.
Beyond the immediate trade implications, the ruling raises questions about the balance of power between the executive branch and Congress. The case represented a major test of Trump’s aggressive assertion of presidential powers, and the court’s decision underscores the importance of clear congressional authorization for significant economic policies.
Other Developments
The shifting trade landscape is not the only matter demanding the Trump administration’s attention. The White House is reportedly considering limited military strikes against Iran, aiming to pressure Tehran into resuming negotiations over its nuclear program. Sources indicate that a potential attack could target military or government sites, with a decision potentially coming within the next 10 to 15 days. The U.S. Military has reportedly been preparing options that include targeting individuals within the Iranian government.
Meanwhile, in France, heightened political tensions are brewing following the death of far-right activist Quentin Deranque. Police reinforcements are being deployed to Lyon for a planned rally in his memory, despite concerns about potential violence. The incident has sparked accusations and counter-accusations between right-wing and left-wing political factions, with international observers expressing concern about the escalating rhetoric. Italian Prime Minister Giorgia Meloni has weighed in, criticizing groups linked to “left-wing extremism,” prompting a rebuke from French President Emmanuel Macron.
Finally, the fallout from the Jeffrey Epstein case continues to reverberate, with British police searching the home of Prince Andrew after his arrest on suspicion of misconduct while holding public office. The arrest, the first of a British royal in over three centuries, is linked to allegations that he shared confidential trade information with Epstein. Prince Andrew has been stripped of his royal titles but remains eighth in line to the throne.
In Osaka, Japan, an anonymous donation of gold bars worth $3.6 million will be used to improve the city’s aging water system, a welcome development for a city facing significant infrastructure challenges.
