The anxiously expected decision by the Supreme Court of the United States, on the main instrument of international economic policy applied by the White House, was announced last Friday. The Court confirmed that tariffs are taxes and only Congress has the power to impose them. Therefore, the President enjoys no authority to impose tariffs during peacetime.

The Wall Street Journal (02/21-22/26) described the decision as “a monumental vindication of the Constitution’s separation of powers.” But many questions remained unanswered, to the point that the decision may increase the uncertainty that has characterized the imposition of tariffs by the White House. For instance, the Court did not say if almost $200 billion collected by the Treasury from the imposed tariffs should be refunded to the importers and to the consumers. The Court’s decision is also generating many questions among those governments that signed trade agreements with the United States, including higher tariffs and investment promises. In several cases, some of these agreements still must be ratified by the legislature of these countries, which means that they are not yet binding.

Augmenting uncertainty, the reaction from President Donald Trump, besides criticizing the Court’s decision and some of the judges, consisted of the immediate announcement, based on other laws, of additional 10 percent tariffs, increased the next day to 15 percent.    

*International analyst and consultant, former Director ECLAC Washington. Commentator on economic and financial issues for CNN en Español TV, UNIVISION, TELEMUNDO and other media.