Trump revises global tarrif to 10% after Supreme Court rules against him

Trump announced a new 10 per cent tariff on all imported goods, stating that most existing trade deals, particularly with India, would remain intactl, reports Reuters.

He also indicated alternative legal avenues to impose tariffs, including the Trade Expansion Act of 1962 and the Trade Act of 1974.

His announcement came following the US Supreme Court ruling citing that the retaliatory tariffs on Bangladesh and other countries were illegal.

The court found that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA), which does not empower the president to impose such tariffs.

In a 6-3 decision, six of the nine justices declared the tariffs imposed last year on various foreign goods invalid, while three supported Trump.

Reacting at the White House, Trump called the ruling “a national disgrace,” accusing some justices of favoring foreign interests.

Trump had previously used tariffs as leverage in international negotiations. During his second term, he imposed rates as high as 37% on goods from several countries, later reduced to 20% following negotiations, and Bangladesh’s tariffs currently stand at 19% under a new trade agreement.

US economist Gregory Daco noted that the Supreme Court’s decision could reduce the average tariff from 16.8% to 9.5%, though further government measures could increase rates again.