Washington is once again opening an explosive trade front. After being disavowed by the Supreme Court over his use of emergency powers, Donald Trump immediately announced a 10% global tariff on imports. This decision revives trade tensions at a time when markets remain particularly sensitive to political shocks. Between institutional confrontation, alternative legal strategy and risk of increased volatility, this episode could weigh well beyond American borders.
In brief
- The United States Supreme Court invalidates Donald Trump's use of emergency powers to impose tariffs during peacetime.
- Tariffs of 25% on Canada and Mexico as well as 10% on China are deemed legally unfounded under IEEPA.
- The constitutional power to levy taxes and customs duties is reaffirmed as resting with Congress.
- Donald Trump immediately announces a global tariff of 10% based on a new legal basis.
Supreme Court invalidates use of emergency powers to impose tariffs
The United States Supreme Court ruled Friday that President Donald Trump cannot use the International Emergency Economic Powers Act (IEEPA) to impose tariffs during peacetime.
The president had invoked this law to justify tariff measures targeting several trading partners, putting forward arguments linked to national security and public health.
THE contested measures concerned in particular:
- 25% tariffs on the majority of goods from Canada and Mexico;
- 10% tariffs on products imported from China;
- A justification based on a supposed “public health crisis” linked to the influx of foreign drugs;
- An argument evoking threats to the American industrial base.
The Supreme Court rejected these legal grounds. In her decision, she precise : “in the half-century of IEEPA’s existence, no president has ever invoked this law to impose tariffs, much less tariffs of this magnitude and scope”. It also recalls the constitutional framework: “Article I, Section 8, of the Constitution provides that the Congress shall have power to lay and collect taxes, duties, assessments and excises. The framers of the Constitution recognized the singular importance of this fiscal power..
With this decision, the court affirms that the executive does not have the necessary authority to impose tariffs under the guise of a national emergency in peacetime, reaffirming the central role of Congress in tax and trade matters.
Trump announces 10% global tariff, maintains other trade levers
In immediate response to the ruling, Donald Trump sharply criticized the Supreme Court, calling the ruling ridiculous during a press conference on Friday. The president announced a change in legal basis to pursue his trade policy.
He has declared : “with immediate effect. All national security tariffs under Section 232 as well as those under Section 301 remain in full force and effect. Today, I will sign an executive order establishing a 10% global tariff under Section 122, in addition to the usual customs duties already collected.”.
This new measure therefore provides for a global tariff of 10% applied under Section 122, in addition to the duties already in force. Tariffs under Section 232, linked to national security, as well as those of Section 301 concerning commercial practices, remain maintained according to the president. The presidential response is therefore based on a legal redeployment rather than an abandonment of the tariff strategy.
Financial markets have historically reacted sensitively to the Trump administration's tariff announcements. According to the article analyzed, these decisions “repeatedly caused sharp declines in markets considered risky, including cryptos and stocks”with trade tensions fueling uncertainty and affecting investor confidence. The latter are already monitoring the potential impact on bitcoin, which is often sensitive to macroeconomic shocks and trade tensions.
The institutional standoff opens a new zone of economic uncertainty. If trade tensions escalate, risky assets could falter. In this unstable climate, some observers already fear that the crypto market will slide into extreme fear! The next political and judicial reactions will be decisive.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
