Trump Threatens Higher Tariffs After Supreme Court Ruling
US President Donald Trump has again escalated trade tensions by threatening to impose “much higher” tariffs on countries deemed to be tampering with trade deals with the United States. The threat comes after the US Supreme Court invalidated part of the basis of his previously broad tariff policy, further limiting his ability to impose unilateral tariffs.
In a social media post on Monday, Trump asserted that any country that “plays around” with the court ruling—especially those he said have “defrauded” the US for years—will face tariffs even heavier than those recently agreed to. This statement demonstrates his administration’s efforts to keep the negotiated trade deal alive, even though the court ruling weakens Trump’s ability to use emergency powers to impose tariffs.
In Europe, the European Union responded quickly, freezing the ratification process for the agreement with the Trump administration. Several European Parliament officials said they wanted clarity on the direction of Trump’s tariff program before resuming the bloc’s internal political process. Meanwhile, other major partners such as China, Japan, South Korea, and the United Kingdom are also among those that already have or are negotiating trade pacts with the US.
Trump also asserted that he did not need to return to Congress for tariff approval. He previously announced a temporary global tariff of 10% for a maximum of 150 days under Section 122 of the 1974 Trade Act, later raising it to 15%. This policy was positioned as a "bridge" while the government prepared more permanent tariffs using other channels, including Section 301 and Section 232.
However, since the Supreme Court ruling on Friday, the government has not appeared to initiate any new investigations, which are usually prerequisites for imposing long-term tariffs through this authority. This situation has led the market to view the direction of US trade policy as still highly dynamic, with the risk of sudden changes remaining high.
Source: Newsmaker.id
