Trump Considers New Tariffs Following Supreme Court Ruling
Reports indicate that President Trump is evaluating the possibility of implementing new taxes on six different industries after a recent Supreme Court decision overturned significant tariffs.
The potential new tariffs might impact various sectors, including large-scale batteries, cast iron fittings, plastic piping, industrial chemicals, as well as grid supply and communications equipment. According to sources familiar with the situation, The Wall Street Journal suggests that these changes are under consideration.
These proposed tariffs would come in addition to a broader set announced just after the Supreme Court last Friday disallowed a levy established under the International Emergency Economic Powers Act (IEEPA). The court ruled that the previous measure overstepped the presidential authority.
The Trump administration had already introduced new global tariffs at a rate of 10% on Tuesday, despite earlier remarks by the president indicating a higher rate of 15%. The administration is exploring an order to increase this tax rate by another 5%, as reported by Bloomberg.
Over the weekend, Trump mentioned he had several obligations lined up around the time when the current interest rate would expire in five months.
The proposed tariffs targeting these six industries would be instituted under Section 232 of the Trade Expansion Act of 1962, allowing the president significant leeway in imposing tariffs related to national security concerns, as per the publication.
The Supreme Court’s ruling effectively nullified high tariffs affecting almost all of the U.S.’s trading partners but did not address Trump’s existing Section 232 tariffs on foreign vehicles, auto parts, steel, aluminum, copper, furniture, and semiconductors.
Thus far, these tariffs have not encountered significant legal challenges, and exemptions have largely been limited. There is a small “stack” rule applicable to auto imports regarding tariff combinations.
Enacting Section 232 tariffs demands an extensive governmental study, which adds time to the process.
The timeline for the Commerce Department to apply new tariffs remains unclear, according to the publication.
White House Press Secretary Khush Desai emphasized, “Protecting America’s national and economic security remains President Trump’s top priority, and his administration is committed to utilizing all legal avenues to achieve this.”
There was no immediate response from the White House regarding requests for comments.
Last week’s Supreme Court decision, made by a 6-3 vote, posed a considerable challenge to Trump’s trade policies by terminating IEEPA tariffs established on “Emancipation Day” last April, which impacted virtually all major U.S. trading partners.
These IEEPA taxes had constituted over half of the tariff revenue during Trump’s second term, which raises significant questions about any potential refunds and the promised $2,000 tariff “dividend checks” slated for distribution before the 2026 midterm elections.
Experts continue to express doubts about whether companies will actually lower prices now that various major tariffs are deemed illegal.
In addition to the six targeted industries under Section 232, Trump’s team is reportedly contemplating new tariffs on nine sectors, which include semiconductors, pharmaceuticals, drones, industrial robots, and polysilicon used in solar panels.
Many investigations into these additional industries seemingly began about a year ago, leading to speculation that the administration might expedite the whole process.
Furthermore, the Trump administration is evaluating modifications to steel and aluminum tariffs that could decrease nominal rates while applying the tax to the total product value, potentially resulting in higher overall rates.
Members of the Trump administration have stated that numerous methods exist to impose tariffs, even if the Supreme Court finds them unlawful.
U.S. Trade Representative Jamison Greer shared with CNBC last week that adjustments to how certain tariffs are applied might be made for compliance reasons.
