In a stunning blow to President Donald Trump's aggressive trade agenda, the Supreme Court has ruled that his use of emergency powers to impose sweeping global tariffs was unlawful. What this really means is that the president's long-running tariff battles are far from over - in fact, they may be about to get even more contentious.
A Weakened Hand for Trump
The Supreme Court's 6-3 decision has effectively stripped Trump of his go-to tactic for unilaterally raising import duties, dealing a significant setback to his protectionist economic policies. As CNN Politics reports, the president is now scrambling to find alternative legal justifications to reinstate his tariffs, but the path forward is fraught with uncertainty.
The crux of the issue is that the law Trump is now relying on, Section 122(a) of the Trade Act of 1974, was intended for very different circumstances - namely, addressing severe "balance of payments" deficits, not the trade imbalances that have been the White House's rationale all along. As CNN Business notes, the administration will need to completely change its justification if it hopes to prevail in court.
A Boon for China, Headache for America
The Supreme Court's rebuke couldn't have come at a worse time for Trump, as he prepares to sit down with Chinese President Xi Jinping for a critical summit in Beijing. CNN Business analysis suggests the ruling has handed China a clear upper hand, cementing its position as the primary beneficiary of the Trump administration's tariff woes.
Indeed, the uncertainty surrounding the future of US tariffs is likely to embolden China in negotiations, potentially complicating efforts to address thorny issues like technology transfers and intellectual property protection. And with midterm elections looming, the political risks for Trump and his Republican allies are substantial - recent analysis suggests his defiant tariff gambit could prove to be an economic albatross.
The bottom line is that while Trump may not be ready to admit defeat, the Supreme Court has delivered a decisive blow to his cherished trade policies. The road ahead is treacherous, and the president's room for maneuver is rapidly shrinking. As the myth of the moderate middle continues to unravel, Trump's trade wars could become an ever-more costly political liability.