News: U.S.-Taiwan Trade Deal Faces Legal Earthquake as Supreme Court Strikes Down Tariff Framework and Trump Imposes New 15% Global Levy
The landmark U.S.-Taiwan trade agreement signed just eight days ago has been thrown into uncharted territory after the Supreme Court struck down President Donald Trump's reciprocal tariff regime in a 6-3 ruling on Friday, declaring that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs. The decision invalidated the legal framework under which the bilateral deal was negotiated, raising urgent questions about the agreement's terms, Taiwan's preferential status, and the future of hundreds of billions of dollars in semiconductor investments. Hours after the ruling, Trump signed a proclamation imposing a new 10% global tariff under Section 122 of the Trade Act of 1974 — a different legal authority that limits levies to 15% for a maximum of 150 days without congressional approval. By Saturday, Trump had raised that rate to 15%, declaring the increase "effective immediately" in a Truth Social post that called the Supreme Court's decision "ridiculous, poorly written, and extraordinarily anti-American." The developments create a paradox for the Taiwan deal. When the agreement was signed on February 13, Taiwan's 15% tariff rate represented a significant concession — a reduction from the 20% initially proposed and far below the 32% that had been threatened. Now, with every country facing a 15% global levy under Section 122, Taiwan's negotiated rate is no longer preferential. The island's cabinet responded on Saturday by saying the new flat tariff would have a "limited impact" on its economy, while pledging to "closely monitor" developments and maintain communication with Washington.