The US Supreme Court’s decision on Friday last week in Learning Resources, Inc v Trump was not just a legal technicality, it was a structural shock to the tariff power of US presidents — and Taiwan should treat it as a strategic signal, not a partisan trophy.
In a 6-3 ruling, the court held that US presidents cannot invoke the International Emergency Economic Powers Act to impose sweeping tariffs.
In Taiwan, the immediate reaction was depressingly small-minded. The opposition mocked the government’s US strategy, while the ruling party appeared cautious, even defensive. Both sides are missing the point. This is not about who misread Washington. It is about what institutions in the US revealed.
For years, tariff policy seemed to hinge on presidential will. The court has made clear that emergency powers are not blank checks. In international politics, we often debate whether US foreign policy is driven by personalities or by structures. This ruling offers a blunt answer: Structure still matters.
The decision demonstrates something fundamental about the US — power is fragmented, legally bounded and subject to correction. Even a determined president cannot indefinitely stretch statutory language without judicial pushback. It means US trade policy is not purely transactional, nor hostage to a single administration’s rhetoric.
Some estimates suggest the ruling could unlock as much as US$175 billion in refund claims for improperly imposed tariffs. Whether the final number is lower is beside the point. The principle is now established: Tariffs built on weak statutory footing are vulnerable.
Instead of relying solely on quiet diplomacy or political persuasion, foreign governments can encourage firms to fight inside the US legal system. Trade disputes will increasingly be shaped in courtrooms as much as in Cabinet rooms.
Taiwan’s semiconductor sector sits at the heart of US-Taiwan economic interdependence. Political rhetoric about “chips” might flare up periodically, but supply chains are governed by contracts, regulatory frameworks and institutional checks. If US administrations turn to Section 122 of the Trade Act of 1974 — which caps tariffs at 15 percent for 150 days — the leverage calculus shifts dramatically. Open-ended tariff threats become harder to sustain.
For Taiwanese firms, this reinforces a critical lesson: Strategic resilience matters more than presidential favor. This is not about whether an American leader voices frustration about trade deficits, it is about how institutional constraints shape what policies can legally endure.
Taiwan’s strength lies in technological indispensability and global integration, not in political flattery, so what should it do?
First, it should abandon the illusion that executive rapport alone is sufficient. Engagement must be institutional.
Second, it should prepare aggressively. A coordinated legal and trade task force should monitor refund mechanisms, statutory shifts and compliance risks affecting Taiwanese exporters.
Third, there has to be a stop to domestic score-settling. Treating every judicial decision in the US as partisan ammunition only signals insecurity. The US system is not imploding; it is recalibrating.
The Supreme Court ruling is a reminder that the US still operates under constitutional constraint, which limits volatility and reduces the durability of legally dubious trade actions.
For Taiwan, rather than being a moment for anxiety or triumphalism, it should be a moment for institutional literacy. Presidents change, but the architecture of US governance — judicial review, statutory limits and separation of powers — continues to shape outcomes.
Simon Tang is an adjunct professor at California State University, Fullerton, who lectures on international relations.
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