News Topical, Digital Desk : The political battle over tariffs in the US has now spilled over into the legal arena. President Donald Trump's trade policy suffered a major setback when the Supreme Court invalidated his tariffs imposed under emergency legislation. This 6-3 majority decision not only raises questions about the Trump administration's strategy but also puts trade policy at the center of renewed debate in an election year.
Major Supreme Court decision:
The US Supreme Court, in a 6-3 decision, held that the President's imposition of tariffs, citing emergency powers, was beyond his constitutional jurisdiction. The court clarified that under the International Emergency Economic Powers Act (IEEPA) of 1977, the President has the right to 'regulate' trade in an emergency, but this law does not directly permit the imposition of tariffs. This decision of the court is being considered a major relief for those states and companies who had approached the court against the increased import duties.
The tariffs were imposed under the IEEPA.
President Trump, invoking this law, first imposed additional tariffs on Mexico, Canada, and China. He then imposed sweeping tariffs on several countries, including India, in the name of "Liberation Day." Trump argued that these measures were necessary to boost American industry and manufacturing. He argued that the tariffs would force foreign companies to invest in the United States and factories to return.
Trump's sharp reaction after the decision
Trump took a strong stance immediately after the Supreme Court's ruling. According to reports, in a private meeting with governors, he called the decision "shameful" and said, "Something has to be done about these courts."
In a statement, he said he could impose a complete trade blockade or sanctions, but could not impose a one-dollar tariff – a move he called a "bizarre situation." These statements indicated he was preparing to challenge the judicial decision or pursue other legal avenues.
New bet: 10 percent global tariff announced
Immediately following the court's decision, Trump announced a new global tariff of 10 percent. This measure is being described as a replacement for the previous tariff. He clarified that the administration will utilize other legal provisions and will not back down on trade policy. He argues that tariffs boost American investment and employment.
The court's decision is being seen as a major victory for US states and businesses
who argued that the sudden increase in import tariffs increased production costs and passed the burden of inflation onto consumers. The ruling could pave the way for potential refunds worth billions of dollars. However, Trump has indicated that the matter could remain entangled in further legal proceedings.
Political heat rises in election year
Trump has been touting tariffs as a cornerstone of his economic policy. At campaign rallies, he claimed these measures would boost jobs and strengthen American industry. However, the Supreme Court's decision has cast uncertainty over his trade strategy in this election year. All eyes will now be on what alternative legal measures the administration adopts and whether this conflict escalates into a major constitutional battle between the executive and the judiciary. For now, it is certain that the political and legal battle over tariffs in the US is far from over.
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