The Supreme Court’s ruling against President Donald Trump’s worldwide tariffs threw a monkey wrench into budget projections that assumed a hefty spike in tariff revenue to help reduce federal deficits. But at least in the short term, a replacement tariff regime may keep that bucket from leaking too much.
The high court on Friday ruled that the president exceeded his authority under the International Emergency Economic Powers Act of 1977, which gives him the power to impose tariffs under certain conditions in national emergencies or foreign conflicts. Trump had relied on that law to impose tariffs on Canada, Mexico and China, as well as “Liberation Day” tariffs worldwide.
The 6-3 decision upended that regime and put much of Trump’s initiative in doubt, though the president vowed to turn to other laws to replace the tariffs that were struck down. Trump said the new regime would begin with a global 10 percent tariff, under Section 122 of the Trade Act of 1974, that he planned to impose later on Friday.
