When Trump decided to impose tariffs on most of the US’s trading partners last spring, he claimed there was a state of emergency in the US. That would give him the authority under a 1977 law to regulate trade on his own, without congressional approval.
This is incorrect, according to the US Supreme Court, which issued its opinion on Friday. IEEPA, the law Trump is citing, does not give him the right to impose tariffs.
According to Reuters, IEEPA has been used in the past to impose sanctions on other states or freeze assets. Tariffs and taxes are usually a matter for Congress.
What exactly the decision means is unclear, however. The dissenting court (voting six to three) gave no indication of what will happen to the roughly $130 billion the U.S. has already gained from trade tariffs.
Donald Trump, who believes the US has been exploited by its trading partners in the past, has previously said he would have to consider various options – a Plan B – if the court rules against him.
The trade tariffs introduced in several waves last year led to a general import tariff of 15 percent for most EU countries. Other tariffs not imposed with reference to the IEEPA, such as: B. tariffs on certain product groups are not affected by the HD decision.
Sweden’s Foreign Trade Minister Benjamin Dousa (M) says today’s announcement is welcomed by the Swedish government.
“It’s no secret that we have been critical of US tariffs from the beginning. Tariffs primarily affect the Americans themselves, but also us,” he said in a comment to DN.
Dousa states that they are analyzing how the outcome affects Swedish companies and “welcome any steps towards lower tariffs” and that the government continues to work to make Sweden less economically dependent on the US.
EU political spokesman Olof Gill says they are in close contact with the Trump administration and are trying to get clarity on what happens next.
“We note and carefully analyze the US Supreme Court’s decision,” Gill wrote on X, according to TT.
He continues to write. “Companies on both sides of the Atlantic depend on stability and predictability.”
Donald Trump has not yet made an official statement, but according to CNN sources he calls the HD decision “a disgrace.”
