&imwidth=800&imheight=600&format=webp&quality=medium "US apex court strikes down swath of Trump’s tariffs, but president says he has a ‘backup plan’. Here are his options")
In a landmark judgment on Friday (Feb 20), the US Supreme Court ruled that the President Donald Trump exceeded his authority in imposing a swath of tariffs that upended global trade. The court said in the verdict that the International Emergency Economic Powers Act “does not authorise the President to impose tariffs.”
“The United States, after all, is not at war with every nation in the world,” the US Chief Justice said while addressing the scope of executive powers in the case. After this, Trump said he has a “backup plan” for tariffs. Let's explore the possible options the American president may consider now.
Section 232: National Security Tariffs
Section 232 of the US Constitution allows tariffs if imports threaten national security. This was previously used for steel and aluminium duties. However, it requires industry-specific investigations. Hence, this section cannot justify sweeping global tariffs.
Section 301: Unfair Trade Practices
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Under Section 301, the US can impose tariffs in response to discriminatory or unfair trade behaviour by other countries. This tool was heavily used during earlier trade disputes, especially involving China.
Section 201: Safeguard Measures
This section allows temporary protection for domestic industries harmed by sudden import surges. These tariffs are time-limited and must meet strict injury standards.
Section 122: Balance-of-Payments Authority
Section 122 of the Constitution permits temporary surcharges (usually capped at 15 per cent) to address serious balance-of-payments problems. It is narrower and more constrained than the emergency powers Trump attempted to use.
What did the court say?
Chief Justice John Roberts said, "The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorisation to exercise it.”
