WASHINGTON, D.C. — The United States Supreme Court delivered a landmark verdict Friday, ruling 6–3 that former President Donald Trump lacked the legal authority to impose sweeping global tariffs under emergency powers. Within hours of the decision, Trump issued a new executive order to enact a temporary 10% global tariff on most imported goods, tilting the nation’s trade landscape once again.
High Court Rules Against Emergency Tariffs
In a historic rebuke of executive action, the Supreme Court held that the International Emergency Economic Powers Act (IEEPA)—the statute Trump relied on for prior tariff levies—does not grant the president unilateral authority to impose broad import duties. Chief Justice John Roberts, writing for the majority, affirmed that tariff powers rest with Congress and cannot be exercised under a sweeping emergency declaration.
The decision strikes down large portions of Trump’s global tariff program, which had imposed duties ranging up to 50% on imports from major trading partners. The justices emphasized that the Constitution vests tariff authority in the legislative branch, reinforcing the separation of powers in economic policymaking.
Trump Orders New 10% Global Duty
Reacting swiftly, Trump signed an executive order establishing a 10% global tariff under Section 122 of the Trade Act of 1974, which allows the president to impose temporary surcharges in response to balance-of-payments problems. The new levy takes effect for 150 days and applies to most foreign goods entering the United States.
In his announcement, Trump defended the move as necessary to address persistent trade deficits and bolster U.S. manufacturing, even as critics warn that tariffs often raise costs for consumers. The renewed tariff effort aims to maintain a central pillar of Trump’s trade agenda while navigating the Supreme Court’s limits on executive authority.
Global and Economic Impact
Effects on Trade Partners
Countries around the world are assessing the implications of the court ruling and Trump’s new tariff directive. Nations with existing trade agreements with the U.S. will see their duty rates adjusted to the uniform 10% rate, providing temporary certainty after the legal upheaval.
In particular, India’s tariff rate, previously pegged at 18% under bilateral trade negotiations, will shift to the new 10% baseline once the executive order takes effect—offering some relief to exporters navigating fluctuating U.S. trade policy.
Legal and Market Reactions
Legal experts observed that while the ruling curtails emergency-based tariff authority, the administration retains other statutory tools, such as Section 301 (unfair trade practices) and Section 232 (national security), to address specific trade concerns.
Financial markets and industry groups reacted to the decision with mixed responses. Some analysts predict potential volatility as global businesses adjust to lower but broader tariffs, while economists debate the long-term effects on trade balances and consumer prices.
