US Supreme Court strikes down Trump tariffs

THE RULING STRIKES at the heart of Trump’s agenda, blunting an all-purpose cudgel he has enthusiastically wielded against trading partners.

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Trump this month set up a process to impose tariffs as high as 25% on goods from countries doing business with Iran. He previously threatened to impose tariffs on European countries resisting his attempt to take over Greenland.

The decision could cut the US average effective tariff rate by more than half. The analysis before the ruling concluded that a broad decision against Trump would reduce the rate from 13.6% to 6.5%, a level not seen since March.Trump’s tariffs on steel, aluminum and automobiles were put in place under a different law, so are not directly affected.

The high court majority said the 1997 law doesn’t authorize tariffs. IEEPA, as the law is known, gives the president a panoply of tools to address national security, foreign policy and economic emergencies but doesn’t explicitly mention tariffs or taxes.