President Donald Trump said Feb. 20 he will sign an executive order to impose a 10% global tariff, hours after the Supreme Court struck down his use of an emergency legal tool to realign global trade.
“Their decision is incorrect,” Trump said. “But it doesn’t matter because we have very powerful alternatives.”
Trump said he will use Section 122 of the 1974 Trade Act to hit the world with the tariff — but that duty can only stay in place for 150 days, unless Congress votes to extend it.
It was not immediately clear whether the new tariff will have a carveout for goods traded under the US-Canada-Mexico Agreement on trade. It also was not clear whether the new levy would stack on top of Trump’s separate tariffs on steel, aluminum, automobiles, lumber and furniture.
Earlier in the day, the Supreme Court said Trump could not use the International Emergency Economic Powers Act, better known as IEEPA, to hit the world with tariffs.
In a 6-3 ruling, the court concluded it was not legal for Trump to use IEEPA for his “Liberation Day” tariffs and fentanyl-related duties on Canada, Mexico, and China.
The majority court decision found that the U.S. Constitution “very clearly” gives Congress power over taxes and tariffs.
The ruling did not say whether the companies hammered by those tariffs should get refunds.
The Supreme Court’s decision “reinforces Canada’s position that the IEEPA tariffs imposed by the United States are unjustified,” said Canada-U.S. Trade Minister Dominic LeBlanc in a post on social media.
– The Canadian Press contributed to this article.
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