President Donald Trump declared on Tuesday that he would impose tariffs on countries manipulating their exchange rates for trade advantages.
Speaking to reporters at the White House before meeting with German Chancellor Friedrich Merz, Trump asserted that it needs to levy tariffs on nations that toy with their currencies. They’re bouncing up and down like yo-yos.
He added that it’ll look after countries that have treated them fairly, but others haven’t, and it won’t let them exploit them anymore.
This statement signals Trump’s intent to directly pressure countries that boost export competitiveness through currency manipulation or monetary policies, potentially escalating trade tensions with major trading partners.
Addressing the recent Supreme Court ruling that deemed his tariffs under the International Emergency Economic Powers Act (IEEPA) illegal, Trump said tha it was a terrible decision, but some say they actually won.
He continued that from another angle, it was a powerful decision because it reaffirmed that it has various types of tariffs at their disposal.
Trump explained that it has what he call a license situation. This license allows us to halt all business immediately. If a country mistreats them, he can stop all business with them without consulting Congress.
He noted that he has the power to stop trade, but apparently not to charge tariffs. It’s absurd, but it has these rights.
Trump emphasized that he could halt everything related to Spain, including imposing sanctions – whatever he deem necessary.
Treasury Secretary Scott Bessent, present at the meeting, confirmed that the Supreme Court reaffirmed the president’s authority to impose sanctions. Sections 301 and 232 of the Trade Act have withstood over 4,000 lawsuits. The Office of the U.S. Trade Representative (USTR) and Commerce Department will initiate investigations to impose tariffs replacing reciprocal duties.
USTR representative Jamison Greer added that it’ll complete the Section 301 investigation, as Secretary Vessenet mentioned, before the five-month global tariff period expires.
Meanwhile, the U.S. Court of Appeals has remanded a lawsuit invalidating IEEPA-based tariffs to the Court of International Trade (CIT) to determine the refund process. This ruling is expected to kickstart legal procedures for potential refunds of 130 billion USD.