The US Supreme Court has ruled President Donald Trump cannot use the International Emergency Economic Powers Act to enact 10 percent baseline tariffs and “reciprocal” tariffs, which he announced in April of last year. However, the Court’s ruling only applies to those tariffs under IEEPA and doesn’t strike down tariffs on aluminum and steel imports made under Section 232.
“The Court’s decision ends the collection of billions of dollars in duties that had far-reaching impact across the economy, from agriculture to energy,” Bracewell’s Josh Zive told the Houston Business Journal.
“Despite the Court’s ruling, substantial uncertainty remains regarding future US tariff levels. Tariffs imposed under Sections 232 and 301 are unaffected, and the Trump administration retains other tariff authorities, including Section 122, which permits a temporary uniform surcharge of up to 15 percent for as long as 150 days in response to a balance‑of‑payments crisis,” Zive said.
