WASHINGTON, D.C. – In a six to three decision, the Supreme Court struck down the President’s global tariffs. In response to the ruling, the President said he will sign an order imposing a ten percent global tariff.
“The Supreme Court’s ruling on tariffs is deeply disappointing,” said President Donald Trump Friday afternoon. He criticized the Court’s ruling, which strikes down the President’s use of emergency powers on issuing global tariffs.
Last year, the administration used a 1970s law that gives the President broad economic powers during a national emergency. Trump used the law to issue tariffs on several countries, including some of America’s closest allies, arguing there’s a large and unfair trade deficit. They also used the law on Mexico, Canada and China, claiming they have not done enough to stop the flow of fentanyl and migrants into the United States.
In the majority ruling, Justices said “the Constitution specifies that ‘the Congress shall have the power to lay and impose taxes, duties, imposts and excises.’”
“We know that tariffs at the end of the day are essentially a tax on consumers,” said John Breyault, with the National Consumers League, America’s oldest consumer advocacy organization. “No matter how the White House wants to spin them to try to penalize other countries, we know consumers in the US are the ones who ultimately end up paying the cost of them.”
While the Court did not address whether companies could get refunded for the billions they have collectively paid in tariffs, Breyault said consumers should be the ones who get repaid.
“We’ve seen reports since tariffs took effect last year, anywhere from 200-250-billion dollars in tariffs have been collected and we know companies that pay these tariffs are all lawyered up and will try to get that money back from the government, but we think it’s consumers who deserve these refunds,” said Breyault.
The President said they will take alternative routes to reimpose many import fees.
“Today I will sign an order to implement a ten percent global tariff under section 122 over and above our normal tariffs already being charged and we’re also initiating other section 301 and other investigations to protect our country of unfair trading practices of other countries and companies,” said Trump.
