Court rules Trump's 10% tariff is just as illegal as the tariff it replaced
·2 min read
Compiled by KHAO Editorial
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The day after the Supreme Court struck down a set of Donald Trump’s emergency tariffs, the president quickly imposed another, using a never-before-invoked provision of a decades-old trade law to order a global 10 percent tariff on most imports.
Key facts
No matter what happens with Section 122 refunds, Trump will probably prioritize concluding “two trade investigations under a legal provision known as Section 301” now that future Section 122 tariffs
Kelly decided that tariffs that Trump imposed under Section 122 of the Trade Act of 1974 were illegal
They’ve urged USTR to narrowly focus on China—rather than all of the US trading partners—when imposing Section 301 tariffs
After the Supreme Court required refunds on Trump’s so-called reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA), both the US government and US businesses faced lawsuits
Summary
Now, that second set of tariffs has been deemed illegal, and there are no more emergency levers that Trump can pull to try to replace them any time soon. For Trump, when the US Court of International Trade invalidated his global tariffs, his key trade policy—which relies on imposing tariffs to supposedly drive more manufacturing into the US—was put at risk of being gutted. Moving forward, Trump won’t be able to rely on the law to collect the global tariffs. Lucky for Trump, the international trade court’s narrow ruling did not require a universal injunction blocking tariffs nationwide, and it limited refunds to only importer plaintiffs who sued.