In a defiant response to a recent Supreme Court decision, former US President Donald Trump has announced his intention to impose a new 10% global tariff, leveraging alternative legal mechanisms to circumvent judicial limitations on his trade agenda.
Speaking at a press conference on Friday, Trump characterized the Court’s 6-3 ruling against his previous sweeping tariffs as “deeply disappointing,” expressing particular dismay with the justices who formed the majority. The Court’s decision specifically invalidated the use of the International Emergency Economic Powers Act (IEEPA) as the legal basis for those tariffs.
Undeterred, Trump revealed his administration’s alternative strategy: implementing the new across-the-board levy under Section 122 of the Trade Act of 1974. This statute empowers the president to impose duties of up to 15% for 150 days to address “large and serious” balance of payments deficits. “We have alternatives that could bring us more money,” Trump stated, emphasizing that “the Supreme Court did not overrule tariffs, they only overruled a particular use of IEEPA tariffs.”
Addressing potential financial repercussions from the overturned tariffs, Trump suggested refund litigation could extend over five years. Concurrently, his administration is initiating multiple Section 301 investigations targeting alleged unfair trade practices by foreign nations and corporations, signaling an intensified approach to trade enforcement despite judicial constraints.