US considers contingency plan for global tariff policy

VTV.vn - US President Donald Trump said he would consider a backup plan to maintain global tariff policy if the Supreme Court ruled against the administration.

US President Donald Trump said on November 6 that he would consider alternative options to maintain tariff policies if the Supreme Court ruled against his administration in a case considered a "major test" of presidential powers and could have far-reaching impacts on the global economy .

Speaking at the White House a day after a hearing on the legality of the reciprocal tariffs being applied to most of America's trading partners, President Trump declared: "We believe we have done a very good job, and if we fail, it will be a disaster for the United States. And then we will have to implement a contingency plan."

The US leader stressed that the 1977 International Emergency Economic Powers Act (IEEPA) – which is currently being used as the basis for global tariffs – is “the best tool” but there may be other options. He said he hoped the administration would prevail in the current case and warned that the US could have to refund “trillions of dollars in tariffs” to importers if the court ruled against it.

He also said major trading partners such as the European Union (EU), Japan and South Korea “are all satisfied with current trade agreements” and that the “tariff tool” is aimed at “protecting against tariffs from other countries”.

Lower courts have previously ruled that President Trump exceeded his authority by invoking the 1977 IEEPA – which was enacted to deal with national emergencies – to impose global tariffs and additional duties on goods from China, Canada and Mexico, on the grounds that these countries “did not act sufficiently” to stop the flow of fentanyl into the US. The Trump administration appealed the ruling, while 12 Democratic-led states and many affected businesses sued the federal government.

During a 2.5-hour hearing on November 5, several US Supreme Court justices expressed doubts about the legality of the tariffs. Even conservative justices, who are close to the Republican administration of Mr. Trump, questioned whether the President had the authority to bypass Congress to impose such high tariffs.

No president has ever used IEEPA to impose such high tariffs so quickly before, and the Supreme Court is expected to rule on it later this year.

Source: https://vtv.vn/my-can-nhac-ke-hoach-du-phong-cho-chinh-sach-thue-quan-toan-cau-100251107160846986.htm