In a vote of six against three, the US Supreme Court nixed President Donald Trump’s global tariffs, calling them unlawful and beyond his authority.
“[We have] concluded that IEEPA (International Emergency Economic Powers Act) did not grant the president the power to impose tariffs,” the judges said in a Friday filing. “It is also telling that in IEEPA’s half century of existence, no president has invoked the stature to impose any tariffs, let alone tariffs of this magnitude and scope. That ‘lack of historical precedent,’ coupled with the breadth of authority that the president now claims, suggests that the tariffs extend beyond the president’s ‘legitimate reach.’”
In response, Trump took to the Truth Social platform, calling the Supreme Court justices “fools and lapdogs,” and noting that the court’s decision would not stop him from imposing taxes.
“Foreign countries that have been ripping us off for years are ecstatic, and dancing in the streets — but they won’t be dancing for long,” he wrote in a post on Truth Social. “The good news is that there are methods, practices, statutes and other authorities, as recognized by the entire court and congress, that are even stronger than the IEEPA tariffs, available to me…and in actuality, I was very modest in my ask of other countries and businesses…. Other alternatives will now be used to replace the ones that the court incorrectly rejected.”
Trump followed by saying the Supreme Court’s decision made a president’s ability to regulate trade and impose tariffs more powerful, and that on Friday he would sign an order to impose a 10% global tariff, under section 122, over and above the normal tariffs already being charged. On Saturday, Trump issued another post on Truth Social stating that effective immediately, he would be “raising the 10% worldwide tariff on countries, many of which have been ripping the US off for decades…without retribution, to the fully allowed, and legally tested, 15% level.”
How the court’s decision, or Trump’s responsive action will affect the industry remains to be seen. US Customs and Border Protection said it was working with other government agencies to examine the implications of the decision. Meanwhile, the American Gem Trade Association (AGTA) explained that it was “still assessing the immediate impact on our members, including the status of potential refunds on duties paid, trade agreements that have already been reached, or still under negotiation, and official statements from the Trump administration.”
The uncertainty comes after a long-awaited deal between the US and India that saw tariffs slashed from 50% to 18% with the potential for those on natural diamonds and gemstones to disappear entirely. However, the National Retail Federation (NRF) sees the ruling as a win for the economy.
“The Supreme Court’s announcement today regarding tariffs provides much-needed certainty for US businesses and manufacturers, enabling global supply chains to operate without ambiguity,” said David French, executive vice president of government relations at the NRF. “Clear and consistent trade policy is essential for economic growth, creating jobs and opportunities for American families. We urge the lower court to ensure a seamless process to refund the tariffs to US importers. The refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers.”
Image: The Supreme Court. (Shutterstock)