Trump Wants to Max Out Temporary Tariff Power After Court Setback
President Donald Trump says he will raise a new global tariff to 15 percent, a day after the Supreme Court struck down the legal foundation of his sweeping import taxes.
The 6 to 3 ruling found that Trump overstepped his authority when he used the International Emergency Economic Powers Act to impose tariffs on nearly every country. The court held that the Constitution grants Congress, not the president, the power to levy taxes.
In response, Trump turned to a different statute, Section 122 of the Trade Act of 1974. The provision allows a president to impose tariffs of up to 15 percent for 150 days to address a large balance of payments deficit. No president had previously used it.
Trump initially set the new global tariff at 10 percent. On Saturday, he said he would increase it to the maximum allowed under the law. The White House has not said when the 15 percent rate will formally take effect.
Because Section 122 caps tariffs at 15 percent and limits them to 150 days without congressional approval, the move gives Trump less flexibility than the emergency powers law he relied on before. Any extension beyond that window would require lawmakers to act.
The administration has indicated it may pursue additional tariffs under other trade statutes that require investigations by the Commerce Department. Those sector-specific measures, including tariffs on steel, aluminum, and autos, remain in place.
The Supreme Court decision leaves open questions about the more than 130 billion dollars collected under the earlier tariffs. Business groups are pressing for refunds, arguing that importers should be reimbursed now that the policy has been invalidated. The administration has suggested that any repayments could face legal challenges.
The ruling has also complicated existing trade arrangements. Countries that negotiated lower rates under prior deals may now face the uniform global tariff under Section 122, though certain sectors such as pharmaceuticals and aerospace are expected to remain exempt.
For Trump, tariffs remain central to his economic agenda. He has argued they will reduce trade deficits and revive domestic manufacturing. Critics say the levies raise costs for American consumers and businesses and inject further uncertainty into global trade.
With the court limiting his broadest authority, the next phase of the tariff fight is likely to hinge on how aggressively the White House tests other legal tools and whether Congress chooses to step in.