Washington: A recent ruling by the United States Supreme Court has shaken President Donald Trump’s tariff policy and created fresh uncertainty in global trade, prompting swift reactions from markets, trade partners, and the White House.
The court found that the president exceeded his authority by using emergency economic powers to impose sweeping import tariffs. The decision limits the use of emergency laws for trade measures and reinforces the role of Congress in setting tariff policy. Legal experts say the ruling could also open the door to disputes over previously collected duties and possible refund claims from businesses.
Within hours of the decision, President Trump announced plans for a new temporary tariff of about 15 percent on imports, using a different legal provision under Section 122 of the Trade Act of 1974. The measure allows short term trade action to address balance of payments issues, but it has rarely been used and could face legal challenges.
The administration says the move is intended to protect domestic manufacturing and address trade imbalances. Critics warn that broader tariffs could raise prices for consumers and increase costs for American businesses that rely on imported goods.
The ruling and the new tariff threat drew immediate international reaction. China criticized the measures as unilateral and said it would defend its economic interests. The European Union urged the United States to respect trade agreements and avoid actions that could disrupt global commerce. Other trade partners signaled concern but have not announced retaliatory steps.
Financial markets responded quickly to the uncertainty. Gold prices rose as investors sought safer assets, while the US dollar weakened and market volatility increased. Analysts say continued legal disputes and shifting trade policies could affect inflation, global supply chains, and investment decisions.
The decision also highlights growing political tension within the United States, as President Trump strongly criticized the court’s ruling and its supporters.
Trade experts say the next phase could involve court challenges to the new tariffs, negotiations with trading partners, and legal claims from companies affected by earlier duties. For now, businesses and governments worldwide are watching closely as the United States reshapes its trade strategy.