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Trump's tariffs face a new path after Supreme Court loss
Summary
The U.S. Supreme Court ruled the president cannot use the International Emergency Economic Powers Act to impose tariffs, and the administration has announced a temporary 10% global import duty that lasts 150 days and would require Congress to extend it.
Content
On Friday the U.S. Supreme Court ruled that the president cannot impose tariffs using the International Emergency Economic Powers Act (IEEPA). The court decided 6-3, with three conservative justices joining the majority. In response, the president announced alternative authorities and a temporary 10 per cent global import duty. That duty runs for 150 days, includes a list of exemptions, and would need Congress to extend it; Canadian goods covered by the Canada-U.S.-Mexico Agreement are exempted.
Key points:
- The Supreme Court found IEEPA cannot be used by the president to impose tariffs in this case (6-3 decision).
- The administration announced a temporary 10% global import duty as an alternative.
- The temporary duty lasts 150 days, includes multiple product exemptions, and excludes goods covered by the Canada-U.S.-Mexico Agreement.
- Any extension beyond 150 days would require action from Congress.
Summary:
The court ruling removed a legal basis the administration had used for broad tariff authority. The administration has signalled it will pursue alternative legal routes and has implemented a time-limited global duty that depends on Congress for continuation. International trading partners, including Canada, remain affected and attentive to how these measures evolve.
