This Friday (20), the United States Supreme Court invalidated the global tariffs imposed by President Donald Trump, on the grounds that only Congress has the power to impose commercial taxes. The decision paves the way for a billion-dollar dispute over the return of fees.
Why did the Supreme Court decide to strike down the tariffs?
The judges understood that Trump inappropriately used IEEPA, an economic emergency law from 1977. According to the Court, the American Constitution establishes that the power to create taxes and fees on foreign trade belongs exclusively to the Legislature (Congress), and not to the president. Thus, the “national emergency” justification was not a blank check for the White House to create these taxes alone.
Will the American government be obliged to return the money raised?
This is the big question at the moment. Today’s judgment did not define whether reimbursement is mandatory or automatic. Experts believe the case will return to smaller courts, where thousands of companies are already suing the government. It is estimated that refund requests could reach US$120 billion, which would generate an immense fiscal cost for the public coffers of the United States.
What fees still apply despite this decision?
Not all fares have fallen. The government confirmed that surcharges based on other laws remain in force, such as Section 232 (which taxes steel and aluminum for national security) and Section 301 (used against China for trade disloyalty and intellectual property infringement). What was specifically canceled was the global “tariff” of at least 10% and the extra fees linked to combating fentanyl trafficking.
What does the concept of Imperial Presidency cited by experts mean?
The term is used to describe when a president concentrates exaggerated powers, acting centrally on issues that should go through Congress. In the case of tariffs, analysts explain that the courts imposed a limit on Trump’s stance, signaling that the government cannot ignore the competencies of other Powers, even under the pretext of international crises or aggressive diplomacy.
What is the practical impact for US trading partners?
For countries like Brazil, the decision brings relief, as it removes an immediate barrier to exports. However, Trump’s negotiating power may diminish. If threats of new tariffs can be nullified by the courts, trading partners tend to feel less pressured to accept bilateral agreements imposed by the Americans. Furthermore, the US economy grew just 1.4% in the last quarter, below expectations, increasing pressure on the government.
Content produced based on information gathered by the Gazeta do Povo team of reporters. To access the full information and delve deeper into the topic, read the report below.
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