U.S. Supreme Court rules tariffs policy illegal! Trump: Will impose a 10% tariff on global goods

After the tariff policy was deemed illegal, Trump announced plans to impose a 10% global import tariff.

On the 20th, U.S. President Trump stated at a White House press conference that he would sign an executive order to impose a 10% import tariff on global goods for 150 days, replacing some emergency tariffs previously deemed illegal by the U.S. Supreme Court.

The U.S. Supreme Court announced its ruling that morning, ruling that the U.S. International Emergency Economic Powers Act does not authorize the president to impose large-scale tariffs, marking a significant setback for the Trump administration’s tariff policies.

Trump: Will impose a 10% global import tariff on top of regular tariffs

On February 20th, local time, President Trump said he would sign an order, under Section 122 of the U.S. Trade Act of 1974, to add an additional 10% tariff on imported goods from around the world on top of the existing regular tariffs, for 150 days, to replace some emergency tariffs earlier deemed illegal by the Supreme Court.

He made this statement during a press conference after the Supreme Court ruled his tariff policies illegal. He also indicated that the 10% tariff policy is expected to take effect “within about three days.”

Analysts believe that, unlike Trump’s previous tariff increases, this new tariff can only last up to 150 days unless Congress approves an extension, according to the above provisions.

U.S. Supreme Court rules tariff policy illegal

The U.S. Supreme Court ruled that morning with a 6-3 decision that the U.S. International Emergency Economic Powers Act does not authorize the president to impose large-scale tariffs. This represents a major setback for the Trump administration’s tariff policies.

In response, Trump claimed there are many “other options” and said the U.S. government will also initiate several investigations under Section 301 of the Trade Act of 1974 for so-called “unfair trade practices,” “to protect our country from unfair trade actions by other countries and companies.”

On the same day, Trump also posted on social media that all tariffs imposed on the basis of “national security” and those levied under Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974 will remain in effect.

U.S. may need to refund $175 billion in tariffs; Trump hints he won’t

Since December 14 of last year, the Trump administration has not provided tariff collection data. However, earlier on the 20th, economists from the Wharton Budget Model at the University of Pennsylvania estimated that the tariffs imposed under the International Emergency Economic Powers Act exceeded $175 billion. With the Supreme Court ruling them illegal, these funds may need to be refunded.

During the press conference, when asked by reporters whether the approximately $175 billion in tariffs collected so far should be refunded, Trump said the Supreme Court’s ruling was flawed and did not mention “retaining this money” or “not retaining this money”—he guessed that “over the next two or even five years, this will go to court.”

At the press conference, Trump also criticized the Supreme Court’s ruling as absurd, saying that the Court would not let him collect even $1 in tariffs under the International Emergency Economic Powers Act, yet he is allowed to cut off all trade or business relations with a country and implement sanctions capable of destroying a nation—“he can do whatever he wants, but he can’t collect $1 in tariffs.”