What did the Supreme Court say in the decision?
Which judges voted against Trump?
The surprising thing was that Trump did not get support even in the conservative leaning Supreme Court. Along with Chief Justice Roberts, Justices Amy Coney Barrett and Neil Gorsuch joined the liberal judges. These judges believed that the administration had misused its powers. Justices Clarence Thomas, Samuel Alito and Brett Kavanaugh expressed their dissent in favor of Trump. Kawana expressed concern that this decision would create a big problem in returning the billions of dollars already recovered. This is the first time that the Trump administration has suffered such a huge defeat from judges of its own choice.
What will happen now with the recovered $134 billion?
Why was there controversy over ‘Liberation Day’ tariff?
Trump had imposed heavy import duties on countries like China, Mexico, Canada and India. This tax on China had reached 145 percent. Trump’s argument was that the tariff would make America a rich country and without it it would become poor. On the other hand, small traders called it a tax collected without the approval of Parliament. He called it a ‘breath-taking’ display of presidential powers. Trump had resorted to an emergency law from the 1970s, in which the word ‘tariff’ is not even mentioned. The court caught hold of this technical flaw and rejected Trump’s claims.
Does Trump have any backup plan ready?
Despite the defeat, Trump seems to be in no mood to retreat. According to sources, he has told the governors that he has a secret backup plan. The President also has some other powers with which he can impose tariffs. However, those laws have time limits and other conditions attached to them. For example, a law allows them to levy 15 percent tax only for 150 days. At the same time, in the name of national security, tax can be imposed on certain industries. Now it remains to be seen what new path Trump adopts to circumvent this court order.
What impact will this decision have on the business world?
This decision has brought great relief to thousands of companies who were troubled by expensive tariffs. Big companies like Costco had already opened a front against this tax. Traders say that this will end uncertainty in the market and prices may come down. However, this is a headache for the government because the refund process is going to be very complicated. The administration has already warned that returning the money will be a long and tedious task. At present, the eyes of the whole world are focused on Trump’s next step because he is known for his stubbornness.