Overview
- Last week the Supreme Court, in a 6–3 decision, struck down the administration’s use of the International Emergency Economic Powers Act to impose sweeping global tariffs.
- Following the ruling, the White House issued a proclamation putting a temporary 10% global import surcharge into effect for 150 days, with officials signaling it will be raised to 15%.
- In his State of the Union address, President Trump called the court’s decision “very unfortunate,” asserted that congressional action is not necessary, and vowed to maintain tariffs under alternative trade statutes.
- Trump said he believes tariff revenue could substantially replace income taxes, a claim widely challenged by reporting that tariffs are typically paid by U.S. importers and consumers.
- Treasury Secretary Scott Bessent declined to commit to refunding roughly $134 billion collected under the invalidated program, saying lower courts will determine refunds as litigation continues.