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Supreme Court tariff ruling clouds the future of U.S. trade deals

An ag economist says the Supreme Court’s decision to strike down President Trump’s use of tariffs could disrupt ongoing trade negotiations.

Ian Sheldon with Ohio State University tells Brownfield, “A lot of countries are now questioning the validity of the deals that they signed. The EU was already starting to back away a little bit. Countries like Japan are wondering if they should continue to make the kind of investments that they were under the deal that they struck.”

The U.S. Supreme Court recently ruled in a 6-3 decision that the President could not use the International Emergency Economic Powers Act (IEEPA) to impose tariffs. SCOTUS says the Constitution gives Congress alone the power to lay and collect taxes and duties.

Sheldon tells Brownfield the final decision did not mention what will happen with current tariff revenue.

“There’s going to be a lot of litigation moving forward about these refunds,” he says. “It’s not entirely clear to me the extent that the revenue will be refunded. We’re talking about $150 to $250 billion that is going to be fought over.”

Following the Supreme Court’s ruling on Friday, President Trump announced he plans to implement a new 15 percent tariff worldwide. 

AUDIO: Ian Sheldon, Ohio State University