Trump Doubles Down on Tariffs

Worldwide rejoicing at President Trump’s tariff defeat by the United States Supreme Court was short-lived as he announced fresh tariffs over the weekend. The changing tariffs mean more arguments with the EU and more threats of a trade war.

• President Trump posted on Truth Social that he would now use other means to impose tariffs “in a much more powerful and obnoxious way.”

President Trump used the 1977 International Emergency Economic Powers Act in his first term and again, much more robustly, beginning last February, to impose sweeping tariffs. The Court ruled 6-3 that this act cannot be used in that way, so he immediately announced a 15 percent tariff under section 122 of the 1972 Trade Act.

• This is a stopgap. Under the Trade Act, these tariffs are in effect for only 150 days. But Congress can renew them. Or President Trump could potentially lift them for one day, and reapply them for another 150 days. That could be challenged in court, but by the time the issue is settled, the next stage of longer-term tariffs could be in place.
• Those longer-term tariffs will probably come from Section 301 of the same act, which allows the president to apply tariffs after an investigation into discriminatory trade practices—a procedure that generally takes at least six months.

The court’s ruling does not force an end to President Trump’s tariff policies, but it does force a change. It not only strikes down his preferred method but also reopens old wounds from last year’s tariff negotiations.

Europe protests: “A deal is a deal,” complained the European Commission in a statement protesting the 15 percent global tariffs. Bloomberg News reported today that the main political groups in the European Parliament have said they’ll now pause all work on passing the trade deal agreed with President Trump last year.

None of this is to say the Supreme Court’s ruling is right or wrong. Justices should look only at what the law actually states, not evaluate all the possible ramifications or try to influence policy according to their own beliefs and preferences.

But this does mean that tariffs will remain in the headlines for months to come—something EU leaders can use to rally Europeans against America. This also hands Germany more ammunition to unite the world against America—the subject of our latest Trumpet issue.