Donald Trump Warns of Higher Tariffs After Supreme Court Blocks Emergency Duties
Washington: US President Donald Trump on Monday warned trading partners against backing away from recently negotiated trade agreements after the Supreme Court of the United States struck down his emergency tariffs, saying countries that “play games” would face significantly higher duties under alternative trade laws.
In a series of posts on his social media platform Truth Social, Trump said nations that attempt to take advantage of the court’s decision would be met with “much higher” tariffs than those previously agreed upon. He also indicated that the US could impose new licence fees on trading partners, though he did not provide further details.
The Supreme Court had invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA). However, Trump said the ruling affirmed his authority to use other legal provisions to implement tariffs “in a much more powerful and obnoxious way, with legal certainty.”
EU Delays Trade Vote
In Brussels, the European Parliament postponed a vote on the European Union’s trade deal with the US after Trump announced a new temporary import duty of 15% on goods from all countries.
Under the proposed agreement, EU exports to the US would face a 15% tariff, with exemptions for hundreds of items including food products, aircraft parts, critical minerals and pharmaceutical ingredients. In return, the EU would remove duties on a range of US imports, particularly industrial goods.
Trump initially announced a 10% duty under Section 122 of the Trade Act of 1974 but raised it to 15% — the maximum permitted under the statute — a day later. The new tariff is scheduled to take effect at 12:01 a.m. EST on Tuesday. At the same time, US Customs and Border Protection will cease collecting the now-invalidated IEEPA tariffs.
Markets React to Uncertainty
The renewed uncertainty over US trade policy unsettled financial markets. The Dow Jones Industrial Average fell 1.34% in early trading on Monday, while the S&P 500 and Nasdaq Composite each dropped 0.65%. The US dollar index slipped 0.2% against major currencies.
The broader outlook for US trade negotiations remains unclear. China urged Washington to withdraw tariff measures, the EU paused approval of its deal, and India reportedly delayed planned talks.
US Trade Representative Jamieson Greer said the administration expects to launch new Section 301 investigations into alleged unfair trade practices by several countries — a move that could pave the way for additional tariffs.
Trump also criticised the Supreme Court justices who ruled against him, including two appointed during his first term. The decision, authored by Chief Justice John Roberts, reaffirmed the judiciary’s authority to check presidential powers.
The president further expressed concern that the court could rule against his administration in a pending case related to restrictions on birthright citizenship, adding another layer of uncertainty to the policy landscape.
