WASHINGTON, D.C. — Leaders in Washington and around the world are reacting after the U.S. Supreme Court struck down President Donald Trump’s sweeping emergency tariffs on Friday.
The president originally responded with a 10% global tariff after Friday’s ruling — only to raise it to 15% one day later. For imports from many countries, it is an even higher rate than it was under the tariffs that were shot down in a 6-3 decision by the high court.
The court ruled that Trump’s sweeping emergency tariffs imposed last year under a specific statute were illegal, saying the administration overstepped its authority. However, not all tariffs were affected.
“All national security tariffs under Section 232 and existing Section 301 tariffs, they’re existing — they’re there — remain in place — fully in place, and in full force and effect,” Trump said Friday.
In fact, about one-third of the president’s tariffs are still in place.
“Those are all legal. Those are specific — the ones against steel, for example, is one. Aluminum is the other and many of them against China are there as well. So those are all staying put,” said Babak Hafezi, an adjunct professor of international business at American University and CEO of Hafezi Capital International Consulting.
Within 24 hours of the high court’s decision, the president announced a new 15% global tariff — up from 10% just a day earlier — relying on a different law that allows tariffs for up to 150 days unless Congress approves an extension.
“After the 150-day period, the Congress must be able to authorize it and expand it,” Hafezi said, adding that the new global tariffs could face challenges as well. “There’s a very strong chance that this is also going to be found illegal because the use of this is not applicable to what it was intended to,” Hafezi said.
Support for the president’s tariffs in Congress largely falls along party lines. However, earlier this month, the Republican-controlled House passed a symbolic resolution seeking to end the national emergency Trump declared to impose tariffs on Canada. A handful of House Republicans joined Democrats to pass the resolution and condemn the tariffs.
On Monday, Senate Minority Leader Chuck Schumer, D-N.Y., said that Senate Democrats “will block any attempt to extend Trump’s tariffs when they expire this summer.”
“Trump’s chaotic tariff policies have already been rebuked by Democrats, Republicans, and even the Supreme Court. They are a tax on Americans, driving prices higher for families,” Schumer said in a post on X.
Any potential added costs for consumers from the new 15% global tariff will likely take a while to be felt, according to Hafezi.
“Generally speaking, we see the full effects of tariffs between months 18 and about 32,” Hafezi said.
Delayed or not, he says higher tariffs will have an effect on the economy.
“Ultimately, when you put tariffs on, what happens is that money that is paid on tariffs, that’s not invested somewhere else in the economy, it’s front-loaded. That $140 billion that was paid out to the government, that’s money that’s not being invested within the economic system. It’s money that’s not being paid in dividends. It’s money that’s not being paid in R&D,” Hafezi said. “That obviously slows down domestic production as well. It has effects, it has massive effects,” he added.
Additionally, when combined, the global tariffs and another serious issue Hafezi says isn’t getting enough attention — the devaluation of the dollar, which is about 13% right now against the euro — “You’re talking about a 28% tariff in a sense for products coming to the United States,” Hafezi said.
Many Democrats and tariff critics are now demanding refunds for the billions of dollars collected from the tariffs that were struck down Friday.
Hafezi said it will likely be a long and tedious process and added there are many unanswered questions.
“This payout process is not going to be fast, it’s going to be very tedious,” Hafezi said. “It’s going to take, potentially even up to a decade to pay out totally. And the processes haven’t been there — who is going to be responsible to pay this out? That money that has been collected, we don’t know where it went, which means Congress may have to authorize it, have to put it as part of a bill and they may have to authorize the process of paying it out.”
Most Republicans in Congress expressed disappointment with the Supreme Court’s decision Friday. Several have said they plan to work with the administration to come up with tools and policies to boost manufacturing and foster a better trade environment for the U.S.
“I am disappointed with the Supreme Court’s ruling, and we must stay focused on the president’s goals of protecting America’s economic and national security. That means new policies and tools that shrink our trade deficit, stop the dangerous flow of fentanyl, bring critical manufacturing jobs home, and prevent foreign competitors from cheating Pennsylvania workers. I look forward to working with the administration to get these in place,” said Sen. Dave McCormick, R-Pa.
“It is incumbent on Congress to work with him [Trump] to create the best possible trade environment for the United States,” said Rep. Nick Langworthy, R-N.Y.
