Trump Administration Imposes New Tariffs Despite Supreme Court Ruling Against Them

U.S. Supreme Court Rules Tariffs Unlawful

According to Главком: On February 20, the U.S. Supreme Court ruled that tariffs imposed by the administration of Donald Trump were illegal, as they exceeded the authority granted to the president by Congress under a 1977 law. This landmark decision underscores the constitutional limits of executive power in trade policy. Despite this verdict, the administration is continuing its tariff policy by imposing new duties under a different legal justification, raising questions about business compensation and sparking sharp political reactions.

U.S. Trade Representative Jamison Greer stated that the administration's strategy remains unchanged. He noted that trade agreements with over 20 countries remain in effect, and the White House expects partners to adhere to them. However, Greer conceded that the administration will now have significantly less flexibility in implementing emergency trade barriers.

New Tariffs and Their Consequences

The day after the court's decision, Donald Trump announced a new global tariff on all imports, raising the duty rate from 10% to 15%. The legal basis chosen for these new tariffs is Section 122 of the Trade Act of 1974. Crucially, these new tariffs will automatically be repealed in five months unless Congress grants its approval. Treasury Secretary Scott Bessent emphasized that the Treasury will await clarification from the Court of International Trade and lower courts before initiating any payments.

Simultaneously, the Trump administration's economic policy has faced criticism. According to polls, 64% of Americans disapprove of the current economic course. Since Trump took office in January 2025, the economic policy has led to:

• a slowdown in GDP growth to 1.4%
• a return of inflation to 3%
• the worst labor market performance in thirteen years

Furthermore, Trump announced that, starting February 1, a 10% tariff will be imposed on all goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, which will increase to 25% on June 1. The stated goal of this tariff is to secure an agreement for the purchase of Greenland. Importantly, this tariff is to remain payable until an agreement for the complete and absolute purchase of Greenland is reached.

The situation with tariffs and the Trump administration's economic policy highlights the complexity of U.S. trade relations with other nations. As the new tariffs could significantly impact businesses and consumers, questions about compensation and economic consequences remain pressing. The Supreme Court's decision also reinforces the importance of checks on presidential authority, which may have long-term implications for U.S. trade policy.