Donald Trump’s swagger over tariffs seems to be losing steam. Following a recent Supreme Court ruling, it appears that his once formidable ability to intimidate foreign nations into submission with tariffs is now a faint echo. The court’s decision clarified that no president possesses the unilateral authority to impose tariffs at will, a blow to Trump’s previous strategies.
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CNN’s Aaron Blake highlighted that Trump’s reliance on Section 122 of the Trade Act of 1974 could potentially unravel his entire tariff scheme:
Trump’s proposed move to impose a blanket 15% tariff globally under a different statute might not only fail but could also lead to the collapse of his entire tariff strategy.
The legislation Trump is now depending on, Section 122(a), was crafted for situations far removed from trade deficits—specifically addressing severe “balance of payments” deficits.
The irony is palpable: the very administration that argued Section 122 does not pertain to trade deficits is now scrambling to justify its use. Trump’s initial emergency tariffs were imposed without Congressional endorsement, and the 122 tariffs, unlike his previous unilateral actions, require Congressional renewal—an avenue Senate Democrats have swiftly closed off.
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