Trump Moves to Bypass Supreme Court Ruling with Fresh 10% Global Tariff
In the wake of a Supreme Court rebuke over his sweeping “Liberation Day” tariffs, President Donald Trump wasted no time announcing a new 10% global import levy.
Framing it under an alternative law, Trump aims to continue his aggressive trade agenda, even as businesses and courts brace for a prolonged dispute over refunds and legality of past tariffs.
While the Supreme Court ruled last week that Trump had exceeded his authority under the International Emergency Economic Powers Act (IEEPA), the president is determined to maintain his protectionist trade agenda, setting the stage for legal and administrative battles over billions in previously collected tariffs.
Immediate Tariff Shift
At a White House briefing, Trump declared the ruling “deeply disappointing” and signaled that the United States would continue to impose duties on foreign goods. Using Section 122 of the 1974 Trade Act, which permits the president to levy tariffs of up to 15% for 150 days without congressional approval, Trump signed an executive order to institute a 10% global tariff effective immediately.
Trump emphasized that other previously imposed tariffs, such as those under Section 232 and Section 301, remain in effect. “I can destroy trade if I want, but apparently I can’t impose a small fee,” he said, criticizing the court’s reasoning.
Legal Uncertainty Looms
The Supreme Court did not address whether importers who paid the now-invalidated IEEPA tariffs are entitled to refunds. Trump acknowledged that this issue “has to get litigated for the next few years,” signaling prolonged uncertainty for businesses that collectively remitted over $130 billion in customs duties since the tariffs were first implemented.
Trade attorneys warn that while electronic claims could simplify refunds, the sheer scale may leave smaller firms struggling to recover their payments.
Mixed Reactions from Businesses
For many small and medium-sized enterprises, the ruling brought cautious relief. Jenelle Peterson, co-founder of Wild Life Outdoor Adventures, said her Canadian toy firm experienced a 25% hit in profits due to the previous tariffs.
“The court’s decision sends a clear message: unpredictable tariff swings are damaging for small businesses,” Peterson said. However, she remains wary of future tariff actions under alternative statutes.
Meanwhile, analysts note a silver lining: the new tariff framework requires investigations and notice periods, offering firms a predictable window to plan imports—something the abrupt IEEPA tariffs lacked.
Political and Economic Ripples
Vice-President JD Vance described the ruling as “lawlessness from the court,” warning that it could hinder the president’s ability to protect American industries. Within the Republican Party, the decision highlights growing divisions over economic nationalism versus free-trade approaches, particularly among lawmakers representing export-heavy or farm constituencies.
What Comes Next?
The immediate consequences include potential litigation over refunds and careful monitoring of Section 122 tariffs. Congress may face renewed pressure to clarify emergency trade powers, while businesses prepare for a complex landscape of overlapping tariffs.
Trump’s swift pivot to a new statutory route demonstrates his continued reliance on tariffs as a key economic and geopolitical tool. Yet, with courts, Congress, and businesses all poised to weigh in, the post-ruling period promises legal, political, and financial uncertainty—underscoring that the tariff saga is far from over.
➡️ Read more:
https://thereporter24.com/news/retroactivity-debate-can-trump-s-new-10-tariff-apply-to-the-past
https://thereporter24.com/news/us-supreme-court-blocks-trump-s-liberation-day-tariffs-a-constitutional-rebuke-with-global-ripples
