Trump Uses Trade Act to Reinstate New Tariffs
The court said that Donald Trump went too far as president when he used the International Emergency Economic Powers Act to put tariffs on goods last year. Trump responded hours later by putting in place a new ten percent tax using a different legal method. He said bad things about the justices and promised to take strong trade actions.
He used Section 122 of the 1974 Trade Act to raise the maximum rate from fifteen to twenty percent. The section allows temporary taxes for up to 150 days before they need to be approved by Congress. Experts in the law say that problems may still come up because the details of how it will be put into place are still unclear.
Source: Bloomberg.com
White House Cites Trade Act Authority While Legal and Logistical Questions Remain
Trump said the tariffs would go into effect right away, but there was no official confirmation of this. A fact sheet from the White House said that the activation date was set for February 24. People who watch say that administrative procedures may affect the actual timeline.
The administration plans to write more “legally permissible” tariff frameworks during the temporary window. Officials say that US industries need stronger protections. But critics say that confusion over procedures could hurt business around the world.
Merz Calls for EU Coordination After Tariff Ruling
After the court ruling, German Chancellor Friedrich Merz called for coordinated European action with Washington. He said that the uncertainty around tariffs is still bad for both economies. Merz stressed that long-term instability hurts growth and business planning.
French President Emmanuel Macron praised judicial oversight and stressed the importance of fairness in trade. He said that France would look at the effects of the new tariff rate. European officials all said they wanted a policy environment that was easy to understand.
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Business Groups Say Higher Tariffs Could Hurt Growth and Cost Consumers More
William Bain, the head of trade for the British Chambers of Commerce, gave a harsh review of the rise in tariffs. He said that the fifteen percent rate hurts consumers and makes it harder to trade in big markets. As things get more complicated, businesses keep asking for more information.
Associations in Canada and Europe had similar worries. A lot of businesses are worried about rising costs and possible problems with their supply chains. If broad tariffs stay in place, economists say that global growth will slow down.
US Tariff Exemptions Spare Minerals and Pharma Sectors
The temporary measure will not apply to critical minerals, metals, or pharmaceuticals. Goods that follow the USMCA agreement between Canada and Mexico are also not subject to the new tax. These exemptions are meant to ease the burden on important sectors.
But the current tariffs on steel, aluminum, cars, and lumber stay the same. These industry-specific duties are handled by different authorities that were not affected by the recent ruling. Experts say that having multiple tariff systems makes it harder to plan for the long term.
IEEPA Tariffs Shift $130B Burden to US Firms
Before the ruling, the US government used the IEEPA mechanism to collect more than $130 billion. Studies say that businesses and consumers in the US paid for ninety percent of the costs related to tariffs. Companies want their money back, but they know it will take a long time to get it.
Trump said that getting paid back would not happen without a lot of legal trouble. Some trade groups have already started getting ready to go to court. If higher tariffs stay in place for the rest of the year, financial stress may get worse.
Trump Slams Supreme Court Tariff Decision
Trump said on Truth Social that the court’s six-to-three decision was anti-American and poorly thought out. He strongly criticized a number of judges, including two he had appointed to the bench. His comments made things worse between the executive and judicial branches.
He praised the dissenting justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito. Trump said they were brave to stand up for his policy goals. Political analysts say that rising rhetoric could make trade debates even more political.
