Court Strikes Trump Global Tariffs

WASHINGTON, Feb. 20 — The U.S. Supreme Court on Friday struck down President Donald Trump’s sweeping global tariffs imposed under the International Emergency Economic Powers Act, a 6-3 decision that deals a major blow to a core economic policy with broad business implications, the Reuters report said.

Chief Justice John Roberts wrote that the statute does not authorize the president to impose tariffs and that Congress holds the taxing power under the Constitution, according to CNBC.

Trump pivots to new levies

Trump called the ruling “terrible” and said he would use other legal tools, announcing a new 10% global tariff under Section 122 of the Trade Act, a temporary authority capped at 150 days, the BBC reported.

The White House said the surcharge will take effect Feb. 24 and includes exemptions for certain minerals, agriculture, pharmaceuticals, electronics and vehicles, according to NBC News.

Refunds, lawsuits, uncertainty

The decision followed lawsuits by businesses and states, and the court did not resolve whether importers will receive refunds for past payments, leaving the issue for further litigation, the Associated Press reported.

Penn-Wharton estimates more than $175 billion in tariff collections could be subject to refunds, while Trump said the question could take years to resolve, according to Reuters.

Markets and trade partners

U.S. stocks rose after the ruling, with the S&P 500 closing up about 0.7% as investors balanced potential relief on inflation with policy uncertainty, the BBC reported.

Overseas partners said they are reviewing the decision and seeking clarity; European Commission spokesman Olof Gill said the bloc will keep pushing for lower tariffs, AP said.

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