The Pak Global Pakistan:
United States President Donald Trump has intensified his tariff policy by increasing global import tariffs from 10% to 15%, days after the Supreme Court declared his initial sweeping tariffs unconstitutional. The court ruled by a 6-3 vote that Trump lacked the authority to unilaterally impose tariffs under the International Emergency Economic Powers Act (IEEPA), as taxation powers lie solely with Congress.
In response, Trump criticized the ruling as “ridiculous” and “anti-American” on his Truth Social platform and swiftly enacted a new executive order under a different statute—the Trade Act of 1974, Section 122—permitting tariffs up to 15%. These new tariffs, however, are temporary, lasting 150 days unless extended by Congress, and could face further legal challenges.
The tariffs have been central to Trump’s economic strategy, aiming to revive American manufacturing, pressure foreign governments on trade and security, and leverage concessions. As of December, the US Treasury had collected over $133 billion from the original tariffs.
Following the Supreme Court decision, over a thousand lawsuits have been filed seeking refunds, with larger firms expected to navigate the process more smoothly than smaller businesses. Meanwhile, foreign governments are grappling with disrupted trade agreements, including those with Taiwan, the UK, Malaysia, and Indonesia.
Reactions globally are mixed, with European leaders preparing coordinated responses and financial officials calling the situation a “fiasco.” Domestically, Trump’s tariff moves have contributed to declining approval ratings, with Democrats accusing him of “pickpocketing the American people” by raising consumer costs ahead of the midterm elections.