INTERNATIONAL TRADE: THE US SUPREME COURT REVERSES THE CUSTOMS DUTIES INSTITUTED BY DONALD TRUMP
Tribune 005 of 02-22-2026
1. During his second term and during his first trade initiatives, Donald Trump implemented an aggressive tariff strategy, often referred to as a "tariff shield" or "reciprocity tariffs."
2. Donald Trump relied on a 1977 law to justify his taxes, arguing that the trade deficit constituted a “national emergency.” This 1977 law is known as the IEEPA (International Emergency Economic Powers Act).
3. Rates vary depending on whether the products fall under "Section 301" (unfair trade), "Section 232" (national security) or the new 2025 executive orders.
4. The countries most affected are CHINA (60 to 100% tax. Electric vehicles and semiconductors are the most affected), MEXICO (25 to 100%), CANADA (25%), the European Union (10 to 25%), SOUTH AFRICA (10% to 25%). It is the most affected country in Africa with its sales of steel and aluminum.
5. President Donald Trump used the 1977 law to declare that the trade deficit or the influx of migrants constituted a "national emergency," which allowed him, according to his advisers, to tax any product from any country.
Donald Trump's logic is based on two pillars:
●The trade deficit: If a country sells more to the USA than it buys, it is taxed (case of China, Germany, Mexico).
●Negotiating leverage: Tariffs are used as a “weapon” to force these countries to accept concessions on immigration (Mexico), security (NATO/Europe) or the purchase of American agricultural products.
THE COURT’S REJECTION
6. The Court ruled that while the IEEPA allows “imports to be regulated” in the event of a threat, it does not grant the President the power to impose taxes (customs duties), a power that belongs exclusively to Congress.
7. This January 20, 2026, the Supreme Court of the United States therefore rendered a historic decision invalidating a large part of Donald Trump's tariff policy.
8. The Supreme Court ruled by 6 votes to 3 that President Donald Trump exceeded his constitutional powers by unilaterally imposing massive so-called “reciprocal” customs duties (aimed at matching the taxes of trading partners) and taxes linked to immigration or drug trafficking.
9. The decision reverses tariffs imposed via executive orders since Trump returned to the White House in 2025. It does not touch already existing specific tariffs based on other laws (like Section 232 on steel and aluminum or Section 301 against China), but it strikes at the heart of the system of "global tariffs" that the president wanted to generalize. The Court, invoking Article I of the Constitution, recalled that the power to levy taxes and set customs duties is a legislative prerogative, (a bit like in the DRC where the Constitution stipulates that taxes are within the domain of the law)
PRESIDENT TRUMP’S REACTION
10. Trump used Section 122 of the Trade Act of 1974. This is the tool that the American President is now activating to circumvent the Court's decision. This law allows the President to impose tariffs (up to 15%).
11. Unfortunately this law has a temporary limit of 150 days (5 months). To extend it, the President must obtain approval from Congress or prove that the economic situation has not improved.
12. In summary, President Trump is attempting to replace a "permanent emergency" (IEEPA) with a "temporary trade emergency" (Section 122) to force Congress to legislate in his favor or to maintain pressure on trading partners despite opposition from the Supreme Court.
Happy Sunday. Our duty is also to involve our ministry in understanding the world's major commercial issues.
Julien PALUKU
