- The Trump administration has been preparing for months for the possibility that the U.S. Supreme court would rule against the president and developed contingency plans as a result, as per a report from NYT.
- The U.S. Supreme Court on Friday struck down President Donald Trump’s tariffs in a 6-3 decision.
- One of the tools under discussion is Section 301, a portion of law that allows the U.S. government to investigate unfair trade practices.
U.S. President Donald Trump is reportedly planning to invoke new trade authorities in response to the Supreme Court’s ruling overturning his sweeping tariffs, by potentially including a new, across-the-board tariff on U.S. trading partners.
The Trump administration has been preparing for months for the possibility that the U.S. Supreme court would rule against the president and developed contingency plans as a result, according to a report from New York Times that cited people familiar with the matter.
The U.S. Supreme Court on Friday struck down President Donald Trump’s tariffs in a 6-3 decision.
More Details
One of the tools under discussion is Section 301, a portion of law that allows the U.S. government to investigate unfair trade practices and impose tariffs accordingly. Mr. Trump used Section 301 to hit China with tariffs during his first term.
Trump’s aides have considered using both authorities, focusing any tariffs in the Section 301 process on countries that do not already have a trade deal.
Trump’s 10% Global Tariffs
Donald Trump in response to the Supreme Court’s order on Friday announced in his presser a 10% global tariff under Section 122.
“Today, I will sign an order to impose a 10% global tariff under Section 122, over and above our normal tariffs already being charged and we're also initiating several sections 301, and other investigations to protect our country from unfair trading practices of other countries and companies,” Trump told reporters.
Market Reaction
U.S. equities gained in Friday’s opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up by 0.61%, the Invesco QQQ Trust ETF (QQQ) rose 0.86%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.34%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘neutral’ territory.
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