In President Donald Trump’s first State of the Union speech of his second term in office, his tariff policies were sure to be mentioned. And, as President Trump noted, February has been a significant month for tariffs, with many new developments occurring just days before the anticipated speech.
On Tuesday night, President Trump explained his plan for tariffs in the future and explained his critique of the recent Supreme Court decision striking down a particular use of a particular type of IEEPA tariffs.
‘Congressional action will not be necessary; it’s already time-tested and approved.’
Trump began by recounting the overall success of his administration’s tariff policies since the beginning of his second term, noting that the United States is “making a lot of money”: “The big story was how Donald Trump called the economy correctly and 22 Nobel Prize winners and economists didn’t. They got it totally wrong. They got it really wrong.”
However, these policies faced a challenge from the Supreme Court last week, as Trump lamented in his speech: “And then just four days ago, an unfortunate ruling from the United States Supreme Court. It just came down. Very unfortunate ruling.”
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Photo by Kevin Dietsch/Getty Images
Despite this potential setback, Trump offered his assurances that many companies wish to “keep the deal that they already made … knowing that the legal power that I, as president, have to make a new deal could be far worse for them, and therefore they will continue to work along the same successful path that we had negotiated before the Supreme Court’s unfortunate involvement.”
Last Friday, the Supreme Court’s 6-3 decision in Learning Resources Inc. v. Trump ruled that Trump’s tariffs under the International Emergency Economic Powers Act were not within the president’s authority. As a result, Trump’s April 2 “Liberation Day” tariffs seemed doomed less than a year after they were announced.
Trump emphasized on Friday that despite his disagreement with the court over the IEEPA tariffs, the ruling had in fact clarified and strengthened the president’s authority under other statutes, including the Trade Expansion Act of 1962, the Trade Act of 1974, and the Tariff Act of 1930. On Tuesday night, he said:
So despite the disappointing ruling, these powerful, country-saving … peace-protecting — many of the wars I settled was because of the threat of tariffs … will remain in place under fully approved and tested alternative legal statutes. And they have been tested for a long time. They’re a little more complex, but they’re actually probably better, leading to a solution that will be even stronger than before. Congressional action will not be necessary; it’s already time-tested and approved.
On top of that, Trump signed a proclamation ordering the initiation of a temporary 10% global tariff, which he announced on Saturday would be raised to 15%. The 10% import surcharge will be effective for 150 days to “address fundamental payments problems.”
However, as of Tuesday, the BBC reported that the additional tariff rate was only instated at the previously established 10%, citing a U.S. Customs and Border Protection document published Monday.
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Concluding his remarks on tariffs, Trump said, “And as time goes by, I believe the tariffs, paid for by foreign countries, will, like in the past, substantially replace the modern-day system of income tax, taking a great financial burden off the people that I love.”
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Politics, Trump, President trump, Tariffs, Supreme court, Scotus, Global tariffs, Donald trump, State of the union, Sotu