Beijing Daily, according to Xinhua News Agency, U.S. President Trump said at a White House press conference on the 20th that he would sign an executive order to impose a 10% import tariff on global goods for 150 days, replacing some emergency tariffs earlier deemed illegal by the U.S. Supreme Court.
This is an important news about the U.S. trade policy being forced to "make an emergency detour" due to a Supreme Court ruling. In short, the Trump administration suffered a major judicial setback in the Supreme Court, and its original tariff policy was ruled illegal. However, it quickly activated a backup legal basis, attempting to continue the "global tariff war" in another way.
Previously, Trump mainly relied on the International Emergency Economic Powers Act (IEEPA) to impose large-scale tariffs, with the logic of "declaring a national emergency" to bypass Congress. However, on February 20, the Supreme Court ruled 6-3 that IEEPA did not authorize the president to impose tariffs, clearly stating that the power to levy taxes belongs to Congress. This means that the approximately $175 billion in tariffs imposed under this law face an illegal risk.
Within hours of being ruled illegal, Trump rapidly switched his legal basis and imposed a 10% global tariff. Trump announced the signing of a new executive order, citing Article 122 of the Trade Act of 1974:
Tariff rate and scope: An additional 10% import tariff will be imposed on all countries globally on top of existing regular tariffs.
Effective time: It is expected to take effect within about three days (around February 23).
Core restrictions: Unlike before, this provision's tariff can last a maximum of 150 days. Unless approved by Congress, it will automatically expire afterward.
Will the $17.5 billion be refunded?
Whether the huge tariffs previously imposed under IEEPA will be refunded is currently the focus of the legal battle.
Trump's attitude, he hinted that this money may not be refunded, and predicted that this matter will lead to a five-year lawsuit.
Companies are not giving up, with more than 1,500 companies having filed lawsuits demanding refunds, including large retailers like Costco.
The tariff war has not ended, only the method has changed!
Trump clearly stated that this is just the beginning. He retained the previous steel and aluminum tariffs (under Section 232) and plans to launch a new Section 301 investigation (targeting unfair trade practices of specific countries). This indicates that even if the short-term legal path is restricted, his trade protectionist strategy of using tariffs to pressure remains unchanged.
The Supreme Court's ruling is a setback for Trump, not only did his tariff policy fail, but it also left many problems for the remaining time, leading to lower public support and greater constraints from the Democrats, making governance more difficult. Especially with the midterm elections approaching, the negative impact is immeasurable, and this incident may increase the Democratic chances of winning. Once the Democrats win the midterm elections, they will proceed with impeachment against Trump. This is what Trump is most worried about; once impeached, he will be in a difficult position during the remaining term. Or be reckoned with and end his political career.
Trump is now taking a gamble.
Original article: toutiao.com/article/1857693686874112/
Statement: The article represents the views of the author.