The Supreme Court rejected Donald Trump’s tariffs with six votes in favor and three against. The Court ruled that Donald Trump cannot impose tariffs based on the International Emergency Powers Act, the one the president used to justify the ‘Liberation Day’ tariffs.
The law gives the president the authority to address “extraordinary threats” in the event of a national emergency, including to “regulate” the importation” of “foreign goods”, and was passed in the 1970s to limit presidential powers regarding national security after the tariffs imposed by Richard Nixon to address the balance of payments crisis following the collapse of the Bretton Woods monetary system. The law makes no explicit reference to tariffs, which are the exclusive jurisdiction of Congress like taxes and for which they were granted only some delegations to the president.
The ruling saw three conservative judges ‘betray’ the president and vote with the three liberals. They are Amy Coney Barrett, Neil M. Gorsuch and President John Roberts. Instead, Clarence Thomas, Samuel Alito, and Brett Kavanaugh voted in favor of tariffs.
Trump: “It’s a shame, I have a backup plan”
Donald Trump called the Supreme Court ruling that rejected customs duties “a shame”. The US president said this, according to CNN, during breakfast at the White House with the governors.
Trump also said he had “a backup plan” in mind.
Stock market: Europe celebrates the rejection of duties, new record in Paris
European stock markets are celebrating after the US Supreme Court rejected Donald Trump’s tariffs. In the Old Continent, there has been a leap in the sectors that had been most penalized by American trade tariffs. The Stoxx 600 index gained 0.8%. Pink jersey for Milan (+1.4%). Paris shines (+1.1%) which sets a new historical record at 8,529 points. London and Frankfurt (+0.6%) and Madrid (+0.5%) were also positive. The luxury stock sector shows its muscles (+3%). Banks (+1.2%), insurance companies (+1.4%) and cars (+0.7%) also performed well. On the currency front, the dollar weakens against the main currencies. The euro rises to 1.1787 on the greenback. The pound and the Swiss franc also strengthened. Government bonds remain indifferent to the Court’s decision. The spread between BTPs and Bunds is stable at 60 points, with the yield on the Italian 10-year bond at 3.34% and the German one at 2.73 percent
The EU: “We await clarity from the US on tariffs after the Supreme Court”
“We note the US Supreme Court ruling and are carefully analyzing it. We remain in close contact with the US administration to clarify what measures it intends to take in response to this ruling. Businesses on both sides of the Atlantic depend on stable and predictable trade relationships. We therefore continue to support low tariffs and work to reduce them.” This was declared by a spokesperson for the EU Commission after the rejection of US tariffs by the Supreme Court.
Canada, Court decision shows that Trump tariffs are unjustified
The Supreme Court decision shows that the tariffs imposed by Donald Trump are “unjustified”. This was stated by the government of Canada, one of the countries most affected by the American president’s tariff policy.