It took only a few hours after the US Supreme Court had ruled against the US administration’s emergency tariffs from ‘Liberation Day’, before President Trump announced a new round of tariffs. As expected, the US administration is invoking Section 122 of the 1974 Trade Act, which allows tariffs of up to 15% for as long as 150 days to quickly address “international payment problems”. The tariffs would expire after 150 days unless Congress extends them. …However, the use of Section 122 could bring new legal problems for Trump. …It’s a trade instrument that has never been used in practice, as the fixed exchange rate regime had come to an end when the 1974 Trade Act was finally approved. …We don’t think that President Trump will use the ruling to back down on his tariff agenda. On the contrary. …Uncertainty is back, and given the latest muscle-flexing by European leaders, the risk of escalation is now higher.
In related coverage:
- France 24: China calls on US to cancel Trump-era tariffs following ruling
- CNN News: John Roberts just gave Trump an off ramp on tariffs. He’s not taking it
- Yahoo!news: EU seeks clarity as new tariffs cast shadow over 2025 trade deal
- Globe & Mail: Trump vows to use tariffs in ‘more powerful and obnoxious’ way after ruling