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The court’s majority decision declared that numerous import tariffs imposed by Trump, which bypassed Congressional approval, were unconstitutional.
In response, Trump took to social media to insist that other nations adhere to tariff agreements they might have previously made with the United States.
“Any country attempting to ‘play games’ with the recent Supreme Court decision, especially those who have taken advantage of the U.S.A. for years, will face significantly higher tariffs, and even harsher penalties than those agreed upon recently,” he warned.
“BUYER BEWARE!!! Thank you for your attention to this matter,” he added.
Although U.S. allies like Australia have criticized Trump’s tariffs as contrary to the principles of free trade, economic analysts have consistently pointed out that American consumers are bearing the brunt of these policies, as importers shift the additional costs onto them.
Despite the Supreme Court’s decision, Trump has signalled he’ll use his executive power to continue to pressure international trade through tariffs, albeit within stricter limits.
He has since signed an executive order that allows him to bypass Congress and impose a global 10 per cent tariff on imports beginning on Tuesday US time.
However, those tariffs will expire after 150 days unless Congress decides to approve them, which may be difficult for the White House to achieve as increasingly nervous representatives look to the upcoming midterms.
Meanwhile, a trio of Senate Democrats is calling for the government to start refunding roughly US$175 billion ($248 billion) in tariff revenues.
The justices left the refund question unanswered.
So what’s going to happen to the money the government has already collected in import taxes now declared unlawful?
When the smoke clears, trade lawyers say, importers are likely to get money back – eventually. Still, the path to refunds could prove chaotic.
The Democrats’ proposed bill would require US Customs and Border Protection to issue refunds over the course of 180 days and pay interest on the refunded amount, prioritising refunds to small businesses.
With Associated Press.
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