Washington, D.C.: US President Donald Trump on Monday warned trading partners against backing out of recently negotiated agreements with the United States, saying they could face significantly higher tariffs under alternative legal provisions.
In a series of posts on Truth Social, Trump said countries attempting to “play games” following the court ruling would be met with tougher trade measures. He also floated the possibility of imposing licence fees on trading partners, though no details were provided.
The warning comes after the Supreme Court of the United States struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling that the President had exceeded his authority. The 6-3 judgment, authored by Chief Justice John Roberts, reaffirmed the court’s power to check executive action.
Trump argued that while the IEEPA-based duties were invalidated, the ruling affirmed his authority to levy tariffs under other statutes “in a much more powerful” manner. He invoked Section 122 of the Trade Act of 1974 to impose a temporary import duty, initially set at 10 per cent before being raised to 15 per cent — the maximum permitted under the law. The new levy is scheduled to take effect at 12:01 am EST on Tuesday.
Simultaneously, US Customs and Border Protection will stop collecting the now-illegal IEEPA tariffs.
EU Postpones Trade Vote
In Brussels, the European Parliament postponed a vote on the European Union’s trade agreement with the US following Trump’s imposition of the 15 per cent temporary duty on imports from all countries.
Under the proposed arrangement, EU exports to the US would face a 15 per cent tariff, with exemptions covering various goods such as certain food items, aircraft parts, critical minerals and pharmaceutical ingredients. In exchange, the EU would eliminate duties on numerous US imports, including industrial goods.
A spokesperson for the Office of the US Trade Representative did not immediately respond to requests for comment.
Markets React to Uncertainty
Renewed uncertainty over US trade policy rattled financial markets. The Dow Jones Industrial Average fell 1.65 per cent, the S&P 500 dropped 1.02 per cent and the Nasdaq Composite declined 1.01 per cent. The US dollar also weakened against the euro and the yen.
China has urged Washington to roll back tariff measures, while the EU has paused approval of its trade deal and India has delayed planned negotiations.
US Trade Representative Jamieson Greer said the administration is preparing to launch new investigations under Section 301 into alleged unfair trade practices by several countries — a step that could lead to additional tariffs.
Meanwhile, 22 Democratic senators introduced legislation seeking refunds for tariffs previously collected under IEEPA within 180 days, though the proposal faces an uncertain legislative path.
Trump also criticised the justices who ruled against him, including two he appointed during his first term. He further voiced concern that the court could rule against his administration in a separate case concerning restrictions on birthright citizenship.
