Trump plans to replace tariffs, salvage trade deals after ruling

Trump plans to replace tariffs, salvage trade deals after ruling

President Donald Trump switched to his backup tariff plan after the U.S. Supreme Court said he couldn’t use a 1977 law to impose sweeping tariffs.

Trump announced a fresh round of tariffs hours after the high court invalidated his use of the 1977 International Emergency Economic Powers Act to impose tariffs worldwide. Recent economic research found that Americans paid more than 90% of those import duties.

Trump said he would use other laws to keep the existing tariffs in place and that he would add a 10% global tariff.

“Today I will sign an Order to impose a 10% GLOBAL TARIFF, under Section 122, over and above our normal TARIFFS already being charged,” Trump wrote in a social media post after the ruling.

Trump said that the other tariff laws he plans to use were mentioned in the Supreme Court decision.

“It’s a little more complicated, the process takes a little more time, but the end result is going to get us more money,” Trump said.

The Supreme Court, divided 6-3, held that the 1977 law didn’t give Trump expansive tariff powers to tax goods entering the country. Justices Clarence Thomas, Brett Kavanaugh and Samuel Alito dissented.

The president criticized the decision, but said the ruling won’t stop his tariff plans.

Phillip Magness, senior fellow at the Independent Institute, said Section 301 of the Trade Act of 1974 would be the safest path forward, but the law comes with limits and restrictions.

“Section 301 has much stricter requirements that Trump must now follow to impose tariffs,” he told The Center Square.

Trump said Friday he plans to launch multiple trade investigations under Section 301.

Magness said Trump has other options as well. Another path would be Section 338 of the Smoot-Hawley Act of 1930. Treasury Secretary Scott Bessent and Jamieson Greer have hinted at this option in recent months. However, Section 338 could also face legal challenges.

“The Supreme Court majority apparently did not find this line of argument to be convincing, as only the three dissenters mentioned Section 338,” Magness said. “This suggests that Trump would likely be overturned again in a future decision, setting into a pattern reminiscent of the Biden Administration’s legal jockeying to reinstate student loan forgiveness after the Supreme Court overruled them.”

Magness said Friday’s ruling gives Congress an opening.

“The ball is certainly in Congress’s court now,” he said.

Until earlier this month, the Republican-controlled House had given Trump wide leeway on tariffs. However, House Speaker Mike Johnson failed to extend a rule that had prevented Congress from taking up tariff matters when three members of his party joined Democrats to block the rule.

Rep. Jodey Arrington, chairman of the House Budget Committee, said Congress needs to step up to support the president.

“Congress should immediately codify the President’s reciprocal trade agreements, which would make these deals more durable, entorceable, and effective in the long run,” he said in a statement. “If this can’t be done in a bipartisan fashion, Republicans should use reconciliation – the most potent legislative tool in our toolbox-to safeguard our economic and national security interests.”

Leave a Comment





Latest News Stories

Poll: Americans skeptical of Trump’s 10% credit card cap

By Andrew RiceThe Center Square A significant portion of Americans believe they cannot take on more debt, according to a new survey from WalletHub. The new survey analyzed the latest...
Arizona attorney general refuses to resign despite pressure over her comments on ICE

Arizona attorney general refuses to resign despite pressure over her comments on ICE

By Zachery SchmidtThe Center Square Editor's note: This story has been updated since its original publication. Attorney General Kris Mayes will not resign from office after the state House and...
Consumer group backs Kansas bills aimed at limiting lawfare

Consumer group backs Kansas bills aimed at limiting lawfare

By Tom JoyceThe Center Square A consumer advocacy group is launching a new national campaign as Kansas lawmakers consider legislation supporters say would limit the use of courts to advance...
Illinois Quick Hits: FEMA says no to Illinois disaster declaration

Illinois Quick Hits: FEMA says no to Illinois disaster declaration

By Jim Talamonti | The Center SquareThe Center Square (The Center Square) – The Federal Emergency Management Agency has denied the state of Illinois’ appeal for a major disaster declaration...
West Virginia law enforcement leading in ICE Task Force Model partnership

West Virginia law enforcement leading in ICE Task Force Model partnership

By Bethany BlankleyThe Center Square West Virginia sheriffs are leading in partnering with U.S. Immigration and Customs Enforcement through a federal 287(g) immigration enforcement program. Located more than 1,500 miles...
U.S. House probes Michigan noncitizen voting claims

U.S. House probes Michigan noncitizen voting claims

By Andrew RiceThe Center Square The U.S. House Oversight Committee is investigating claims of noncitizen voting in Michigan. U.S. Reps. James Comer, R-Ky., and John James, R-Mich., sent a letter...
Chicago aldermen discuss delayed payments, cash flow issues

Chicago aldermen discuss delayed payments, cash flow issues

By Jim Talamonti | The Center SquareThe Center Square (The Center Square) – A Chicago alderman is urging city officials to support legislation in Springfield that would require Cook County...
Ex-COPA deputy who revealed boss’ anti-cop bias can’t sue over firing

Ex-COPA deputy who revealed boss’ anti-cop bias can’t sue over firing

By Scott Holland | Legal NewslineThe Center Square A federal judge has tossed a lawsuit from a former top investigator for the Chicago city office responsible for investigating police misconduct...
Deadline approaches for Colorado River negotiations

Deadline approaches for Colorado River negotiations

By Liam HibbertThe Center Square Officials negotiating to protect and redefine use of the Colorado River face a major deadline approaching on Feb. 14. And experts said an agreement is...
California Assembly OKs $90M bill for Planned Parenthood

California Assembly OKs $90M bill for Planned Parenthood

By Madeline ShannonThe Center Square The California Assembly on Monday afternoon approved $90 million in funding for Planned Parenthood. The contentious debate on the Assembly floor highlighted the rift between...
Massie doubles down on calls for Lutnick to resign

Massie doubles down on calls for Lutnick to resign

By Morgan SweeneyThe Center Square Longtime Rep. Thomas Massie, R-Ky., continued pushing Monday for Commerce Secretary Howard Lutnick’s resignation over his relationship with deceased child sex offender Jeffrey Epstein. Massie...
Seahawks' Super Bowl win temporarily jolts local Seattle economy

Seahawks’ Super Bowl win temporarily jolts local Seattle economy

By Brett DavisThe Center Square The Seattle Seahawks’ win over the New England Patriots in Super Bowl LX at Levi’s Stadium in Santa Clara, Calif., on Sunday is expected to...
Next oil and gas lease sale for U.S. Gulf scheduled for March

Next oil and gas lease sale for U.S. Gulf scheduled for March

By Alton WallaceThe Center Square The next sale of oil and gas leases in the Gulf of America is set for March 11, one of dozens scheduled over the next...
Lawsuit demands Pritzker’s office release docs over pic with criminal

Lawsuit demands Pritzker’s office release docs over pic with criminal

By Jonathan Bilyk | Legal NewslineThe Center Square Illinois Gov. JB Pritzker's office has illegally attempted to scrub from the public record photos and other proof that he posed at...
Pritzker announces bond expansion, says progress has been made with Bears

Pritzker announces bond expansion, says progress has been made with Bears

By Jim TalamontiThe Center Square Gov. J.B. Pritzker says progress has been made in conversations with the Chicago Bears. Pritzker announced the expansion of sales tax and revenue bonds for...