POUGHKEEPSIE- The Supreme Court struck down Donald Trump’s global tariffs on Friday, but according to a Marist University Economics Professor, the President still has alternatives to enforce similar, yet less restrictive, taxes.
Trump said on Saturday that he will raise his global tariff to 15%, up from 10% he imposed on Friday, after the court’s ruling.
“Beyond tariffs, more assertive policy avenues could include strengthening export and import controls, tightening investment screening, or expanding the use of national security provisions,” said Dr. Jin Lau, an Assistant Professor at Marist. “Another approach, and a more economically sustainable one, would be to shift toward more targeted measures if broad tariff authority becomes more constrained. The strategy could focus on sector-specific policies or structured bilateral negotiations rather than across-the-board tariffs.”
Lau noted that rather than imposing broad, across-the-board high tariff rates, a more effective approach may involve negotiating sector-specific trade agreements, offering domestic industrial incentives for industries with strong growth potential, and using targeted tax credits and subsidies to support specific sectors. As far as the U.S. economy moving forward, Lau said that if markets interpret the Supreme Court ruling as a signal of institutional stability and a lower probability of renewed tariff escalation, expected inflation may decline.
U.S. stocks rose on Friday after the Supreme Court ruled that Trump overstepped his powers in invoking the International Emergency Economic Powers Act to impose tariffs on several trading partners. Angered by the high court’s ruling, Trump signed a proclamation Friday allowing him to bypass Congress and impose a 10% tariff on most U.S. imports. The law permits the president to levy up to 15% for 150 days, though the move could face more legal challenges.
“Stable and focused policies are more likely to support investment, productivity growth, and stronger economic fundamentals,” Lau said. “Greater policy clarity will be essential. Businesses and financial markets respond to predictability.”
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