The Supreme Court ruling means we need international institutions more than ever

(Jenny Gordon – Lowy The Interpreter) The US Supreme Court decision has upheld that only Congress has the power to tax, ruling that the President cannot use the International Emergency Economic Powers Act (IEEPA) to impose tariffs . The decision takes off the table is the use of tariffs for the primary purpose of raising government revenue. But it does not remove the disruptive role that the US has been playing for global trade and investment. In response to the court, Donald Trump has already announced a 15% tariff on all countries, with Section 122 of the 1974 Trade Act giving the President the power to impose such measures for a maximum of 150 days. Trump will no doubt look for new ways to impose lasting tariffs, including through national security justifications under section 232 as is currently applied to steel and some other products. Tariffs are his weapon of choice to coerce other countries into agreements that have included benefits for the Trump family as well as favouring some US businesses at a cost to US consumers and other US businesses. It is this coercion, as well as the uncertainty generated by a constantly changing US trade policy, that are reducing the power of trade and foreign investment as drivers of economic growth. – The Supreme Court ruling means we need international institutions more than ever | Lowy Institute