President Donald Trump has announced a new 10% global tariff, a move made shortly after the Supreme Court ruled against his administration's use of national emergency powers to levy tariffs during peacetime. The court's decision stated that the President cannot unilaterally impose tariffs under the International Emergency Economic Powers Act (IEEPA).
President Trump criticized the ruling, calling it "ridiculous." He stated that he would implement the new tariffs using alternative legal authorities, specifically citing the Trade Expansion Act of 1962 and the Trade Act of 1974. Existing national security tariffs under Section 232 and Section 301 will remain in effect. The new order imposes a 10% global tariff above existing duties.
Tariffs previously imposed by the Trump administration have been linked to significant market volatility, particularly in risk-sensitive assets like cryptocurrencies and equities, due to increased uncertainty and shaken investor confidence.
The Supreme Court rejected the administration's justifications for tariffs under IEEPA, which included claims of a public health crisis from drug imports and national security threats from trade deficits with China. The ruling emphasized that the Constitution grants Congress the power to levy taxes and duties.