US Supreme Court strikes down Trump global tariffs

On Fri, the US Supreme Court ruled against the global tariffs imposed by Donald Trump, declaring them illegal. This decision challenges a significant component of the former president's economic policy that significantly affected international trade.

The ruling was decided by a six-three vote from the conservative-majority high court. It concluded that the 1977 International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. This decision does not affect sector-specific duties on imports of steel, aluminum, and other goods, which remain under separate legal frameworks.

The verdict represents a significant setback for Trump since his return to the White House. During his tenure, the former president extensively used tariffs as a tool for diplomatic negotiation and applied emergency economic powers to impose new duties on nearly all US trading partners.

The tariffs included "reciprocal" measures against what were considered unfair trade practices, along with specific duties targeting countries such as Mexico, Canada, and China due to issues like illicit drug flows and immigration.

The Supreme Court noted the absence of explicit authorization for tariffs in the IEEPA and maintained that Congress would have clearly stated such powers if intended. The court's decision aligns with previous lower court rulings against the tariffs under IEEPA.

Conservative Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissented. Chief Justice John Roberts stated that the IEEPA does not mention tariffs or duties.

A lower trade court previously ruled in May that Trump's across-the-board tariffs exceeded his authority, a decision that has been on hold pending appeal. KPMG's chief economist Diane Swonk cautioned that while tariffs deemed illegal might be reinstated through other means, any market reactions are premature.

Based on reporting by Africanews.