Donald Trump, the US president, has warned that he will impose higher tariffs against countries who he believes are playing “games” with trade agreements. The Supreme Court has blocked the US President’s global tariff plan.
Trump posted on Truth Social that “Any country who tries to exploit the Supreme Court decision, especially those countries that have ripped off the US for years, will be facing much higher tariffs,” Trump wrote. “Buyer beware.”
The Supreme Court ruled Trump had exceeded his powers under the 1977 International Emergency Economic Powers Act, which was the foundation for the majority of Trump’s second term tariffs.
New Tariffs for Global Trade
Despite the Supreme Court’s ruling, which limits its previous power, there are still a variety of tariffs that apply to certain countries and products. Certain goods are excluded.
US Trade Representative Jamieson Greer said that the Administration is looking for legal ways to keep similar tariffs, even though current legislation cannot last longer than 150 days without Congress approval. Trump claims that he doesn’t need any further approval because prior authorizations are sufficient.
Democratic Opposition
Chuck Schumer, Senate Democratic Leader warned Democrats that they would not allow the tariff plan to be extended beyond 150 days. He said that he would continue to oppose Trump’s tariff taxes, citing the negative economic impacts on businesses and consumers.
Trump has claimed that tariffs protect the national security, boost manufacturing in America, and create jobs. However, critics point out that tariffs can increase consumer prices, and harm the global economic system. According to a Federal Reserve Bank of New York study, US businesses absorbed 90% of tariffs imposed on imports coming from Mexico, China and Canada.
International Impact
The new global tariff rate of 15% will affect countries like the UK that negotiated special rates for their trade with the US. British officials expect that their current favorable trade position will continue, despite these changes.
Businesses around the world report dealing with uncertainty due to constantly changing tariffs. Fraser Smeaton is the co-founder and CEO of a UK company that exports 60% of their products to the US. He described last year’s tariff fluctuation as “rollercoaster” with rates ranging from 0% up to 145%.
Trump called the Supreme Court’s ruling “ridiculous and anti-American.”Treasury Secretary Scott Bessent believes that lower courts will resolve the issues and maintain tariff revenues.
