Donald Trump is pushing ahead. The president refuses to let the Supreme Court tie his hands and imposes new global tariffs, first setting them at 10% and then, less than 24 hours later, at 15%. This tightening reflects the president's anger at the resounding rejection, but also his desire to flex his muscles and prove his ability to overcome any obstacle, from the Epstein scandal to the High Court.
"As president, I will, effective immediately, raise global tariffs from 10% on countries, many of which have 'ripped off' the United States for decades, without retaliation (until I came along!), to the fully permissible and legally tested level of 15%," he announced on his social media account, Truth, referring to Section 122 of the Trade Act of 1974, which has never been used before but allows the imposition of tariffs of up to 15% for a period of 150 days without congressional approval. The new tariffs will go into effect at midnight on February 24 and will last approximately five months.
The administration intends to use this time to sharpen its weapons and decide on countermeasures after the Supreme Court declared the tariffs imposed under the International Emergency Economic Powers Act illegal. Trump's response to the Supreme Court's backlash with new tariffs was predictable, but the president's increase in the space of a few hours from 10% to 15% has further compounded the confusion already created by the ruling and opened the door to a period of intense uncertainty. Much will depend on the alternative paths the president decides to pursue to continue his trade war with all those who—he continues to reiterate—have "taken advantage" of the United States for decades.
One of the avenues the president cited is Section 301 of the Trade Act, described by one of its architects as the "Magna Carta" of American trade law . Trump already used Section 301 against China in his first term and allows the president to impose tariffs after conducting an investigation into whether a country has adopted unfair trade practices and violated previously signed trade agreements. Another option is Section 232 of the Trade Expansion Act, which allows Trump to impose tariffs on foreign products for national security reasons. The tycoon has already used it to impose tariffs on imports of automobiles, steel, and copper. Another alternative is Section 338 of the Tariff Act of 1930, which allows the president to impose tariffs of up to 50% on countries that discriminate against the United States in trade.
The White House's next moves aren't the only unclear issue to resolve. The rejection of the tests sheds no light on refunds, much less on the trade agreements reached in recent months, including the one with the EU. On the refund front, the only judge to weigh in on the matter in the ruling is Brett Kavanaugh, the judge who voted against the tariff abolition, becoming the president's "new hero." Kavanaugh described potential refunds as chaotic and warned against agreements reached by leveraging tariffs. Many American companies and states have already urged authorities to expedite the process of refunding the funds paid, but experts say it will take years, as it will likely be handled on a case-by-case basis.
On the trade agreements front, observers believe little will change, at least in the short term. Foreign governments are too worried about potential retaliation from the White House should they decide not to honor their commitments. This view, experts explain, is especially true for the European Union, where trade issues intersect with those of Ukraine, NATO, and Greenland. In any case, the rejection will force the White House to proceed with greater caution, in part because the president's image has been tarnished by a ruling that limited his powers and dealt a blow to his credibility.
(Unioneonline)