Donald Trump on Monday warned countries against stepping back from recently negotiated trade agreements with the United States after the Supreme Court of the United States struck down his emergency tariffs. He said nations attempting to “play games” with the ruling would face significantly higher duties imposed under alternative trade laws.
In a series of posts on Truth Social, Trump said the court’s decision invalidating tariffs under the International Emergency Economic Powers Act (IEEPA) would not prevent him from using other legal authorities to impose trade penalties. He argued that the ruling effectively affirmed his ability to act under different statutes “in a much more powerful and obnoxious way, with legal certainty.”
Trump also suggested that the US could introduce license fees on trading partners, though he did not provide details on how such fees would be structured or implemented. A spokesperson for the Office of the US Trade Representative did not immediately comment on the potential plans.
EU Delays Trade Vote Amid New US Import Duty
In Brussels, the European Parliament postponed a vote on the European Union’s trade agreement with the US after Trump imposed a temporary 15% import duty on goods from all countries.
Under the proposed deal, EU goods would face a 15% US 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% temporary tariff under Section 122 of the Trade Act of 1974 but raised it to the maximum allowable 15% the following day. The new duty is scheduled to take effect at 12:01 a.m. EST on Tuesday. At the same time, US Customs and Border Protection will stop collecting the now-invalidated IEEPA-based tariffs, several days after the Supreme Court’s ruling.
Markets React to Renewed Trade Uncertainty
Financial markets responded negatively to the renewed tariff uncertainty. The Dow Jones Industrial Average fell 1.34% in early trading, while the S&P 500 dropped 0.65%. The tech-heavy Nasdaq Composite also declined 0.65% by mid-morning. Meanwhile, the US dollar index weakened 0.2% against major currencies.
The broader path forward for US trade negotiations remains unclear. China has urged Washington to scrap tariff measures, the EU has paused approval of its agreement, and India has reportedly delayed planned talks.
US Trade Representative Jamieson Greer said the administration expects to launch new Section 301 investigations into unfair trade practices by several countries, a move that could pave the way for additional tariffs.
Trump also criticised the justices who ruled against him — including two he appointed during his first term. The opinion, authored by Chief Justice John Roberts, reaffirmed the judiciary’s authority to check presidential power.
Additionally, the president expressed concern that the Supreme Court could rule against his administration in a forthcoming decision on efforts to restrict birthright citizenship, further escalating tensions between the executive branch and the judiciary.