President Donald Trump defended his tariff agenda during his State of the Union address Tuesday, even as a Supreme Court ruling striking down his emergency tariffs cast fresh confusion over the raft of trade deals negotiated with global partners.
The court ruled Friday that the president had exceeded his authority by imposing tariffs on goods from nearly every country in the world under the International Emergency Economic Powers Act (IEEPA). Trump has said he planned to do so again within the bounds of the law.
Almost immediately after, Trump replaced it with a 10% tariff under Section 122 of the Trade Act of 1974 that took effect on Tuesday. He had also threatened to increase it to 15% tariffs under Section 122, but it is unclear when they would take effect.
The ruling has raised questions about bilateral trade agreements structured around IEEPA tariff rates, prompting foreign governments to reassess their positions.
″[Trading partners] made concessions in exchange for specific tariff treatment that was grounded in IEEPA. That legal basis no longer exists,” said Johannes Fritz, CEO of the St.Gallen Endowment for Prosperity through Trade.
