I. Review of the ruling: Judicial correction of administrative overreach and phased reduction in tax rates
On February 20, the U.S. Supreme Court ruled 6-3 that the International Emergency Economic Powers Act (IEEPA) does not grant the President unilateral authority to impose tariffs. The core logic of this decision stems from the system of checks and balances under the U.S. constitutional framework:
Taxation authority: The court determined that tariffs are essentially within the scope of taxation (Tax). According to the Constitution, this power clearly resides with Congress rather than the executive branch.
Major Questions Doctrine: The court ruled that the language regarding 'regulation of imports' in IEEPA is insufficient to constitute clear congressional authorization for the core power of taxation. (*Regulation of imports refers to government management, restriction, or adjustment of foreign goods entering the domestic market through laws and administrative measures.)
Market impact: This ruling rendered existing tariffs imposed under IEEPA invalid, including reciprocal tariffs on 'Liberation Day' (10%-50%), special tariffs on fentanyl, and a 25% tariff on Canada and Mexico. The effective U.S. tariff rate temporarily dropped sharply from approximately 17% to about 7%.
II. Current Situation Assessment: The Stalemate Over Refunds and Trump's Counterattack
The market is now more focused on whether the tariffs already imposed will be refunded, and if so, how they will be refunded. Meanwhile, in subsequent...