Trump Pledges to Bring Back Global Tariffs After Supreme Court Defeat

Melbourne, February 21: US President Donald Trump has announced a new round of global tariffs after the Supreme Court struck down his previous import taxes, ruling that he had no legal authority to impose them under emergency powers laws. The court’s decision has dealt one of the most significant blows to Mr Trump’s agenda since his return to the presidency, with major implications for international trade and the US economy.

In a 6–3 ruling, the Supreme Court upheld a lower court finding that Mr Trump had acted unlawfully by imposing broad global tariffs under the International Emergency Economic Powers Act (IEEPA), a law designed for genuine national emergencies. Chief Justice John Roberts said the president must point to clear authorisation from Congress to impose such sweeping trade measures, which Mr Trump failed to do.

An angry Mr Trump lashed out at the court following the decision, branding the ruling “deeply disappointing” and accusing the justices of undermining America’s interests. Without providing evidence, he claimed the court had been influenced by foreign interests. He vowed to revive the tariffs using alternative legislation and announced he would sign an order introducing a new global tariff of 10 per cent, potentially higher in future.

The ruling could force the United States to refund more than US$100 billion already collected in tariffs from businesses, though it remains unclear how such refunds would be processed. Legal experts say the decision is likely to trigger a wave of new lawsuits in lower courts as companies seek compensation. Justice Brett Kavanaugh, who dissented from the majority decision, warned the refund process could become a “mess”, as many importers have already passed higher costs on to consumers.

The court’s decision does not affect product-specific tariffs on steel, aluminium, copper, cars and car parts, timber and furniture. However, it overturns Mr Trump’s controversial “reciprocal tariffs” announced last year on imports from more than 180 countries, which ranged from a baseline 10 per cent to as high as 49 per cent on some nations. The measures angered many of America’s trading partners and raised concerns about higher living costs for consumers.

Australian exporters, who were subject to the 10 per cent baseline tariff, are now hopeful of significant refunds. Modelling cited by the ABC suggests Australian businesses could be owed more than $1.4 billion if the tariffs are formally deemed unlawful. Trade experts have urged companies to review their records and prepare documentation quickly to preserve their refund rights within statutory time limits.

The legal challenge was brought by a coalition of small businesses and several US states, which argued Mr Trump overstepped his authority by using emergency powers to justify the tariffs. The Supreme Court agreed, finding that the IEEPA does not authorise the president to impose tariffs and that such powers rest with Congress.

California Governor Gavin Newsom welcomed the ruling, calling it a victory for families and small businesses who had borne the cost of higher prices. Former vice-president Mike Pence also praised the decision, saying it would bring relief to American households and businesses affected by the tariffs.

While three justices dissented, two judges appointed by Mr Trump sided with the majority to strike the tariffs down, underscoring the significance of the court’s rebuke. With Mr Trump now pushing ahead with new trade measures, fresh legal battles appear inevitable, setting the stage for renewed confrontation between the White House and the courts — and further uncertainty for the global economy.

– ABC News