‘A check on his power’: Trump weakened however not deterred after tariff ruling, say analysts | USAEMALL.com

TRUMP’S TEMPORARY FIX 

Indeed, while the ruling bars Trump from using IEEPA to impose sweeping country-based tariffs, it does not strip him of other trade powers. 

A day after the court’s decision, Trump doubled down by raising the global duty on imports into the US to 15 per cent under Section 122 of the 1974 Trade Act. 

However, the measure is temporary and expires after 150 days. After that, Congress has to step in. 

Heng Koon How, head of markets strategy at UOB, said securing approval from Congress may prove challenging. Some Republican lawmakers have openly opposed tariffs on close allies such as Canada, raising doubts about whether Trump can muster majority support in both houses. 

This means the tariff landscape is likely to remain volatile, clouding the outlook for both the US economy and global trade. 

“For the next 150 days, there will be much more uncertainty as to how tariffs are stacked up, how they apply, if the existing trade deals still apply, etc.,” Heng told CNA’s Asia First programme. 

Beyond Section 122, Trump still has other legal avenues. 

These include Section 301 of the same Act, which targets unfair trade practices, and Section 232 of the Trade Expansion Act of 1962, which addresses national security concerns. The latter is already in place for industry-specific tariffs on steel, aluminium, lumber and automobiles. 

The Supreme Court’s decision has also thrown into question a series of trade deals struck in recent months. While Trump has indicated some agreements would stand, details remain unclear. 

Some trade partners are concerned they may have to pay the 15 per cent global rate on top of rates they have already negotiated with Washington.

“(Trump) can always impose higher rates above the 15 per cent … because of other sections of the law,” said Edmund Sim, a partner at Appleton Luff International Lawyers in Washington DC. 

“So, it’s a consideration for every country (if) they want to … on a diplomatic level disturb the status quo. It would be difficult for countries, for example, those at last week’s Board of Peace meeting, to revisit agreements they already have with the US.”