UK trade deal with US at risk after Supreme Court ruling on Trump’s tariffs | World | News
Britain’s trade deal with the US is at risk (Image: Getty)
US President Donald Trump has claimed that the US Supreme Court’s decision to impose worldwide tariffs would be very difficult to reverse and would potentially threaten his deals with the UK. The decision, which comes after challenges to businesses in 12 mostly Democratic-run states, nullifies the broad tariffs that were a mainstay of Mr. Trump’s second-term trade policy.
The court noted that “no President has made the call.” [IEEPA] “Imposing any tariffs, let alone tariffs of this size and scope,” he described these measures as an overstepping of executive authority.
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Court ruling invalidates sweeping tariffs imposed by Donald Trump (Image: Getty)
Writing on social media, Trump said: “It would take many years to figure out what number we are talking about or even who to pay, when and where.”
“This would be a complete mess and it would be almost impossible for our Country to pay,” he added.
In theory, the decision jeopardizes the Trump administration’s trade deals with countries such as the United Kingdom and the European Union, which were negotiated in the context of Mr. Trump’s “reciprocal” tariffs.
The White House is expected to turn to a range of other tools to replace IEEPA tariff revenue and keep trade agreements in place.
Initially, these would include Section 122 of the 1974 Trade Act, which allows the President to impose tariffs of up to 15% for up to five months.
The court’s decision was supported by six justices, including three liberals: Ketanji Brown Jackson, Elena Kagan and Sonia Sotomayor, and three conservatives: Amy Coney Barrett, Neil Gorsuch and John Roberts.
Justices Brett Kavanaugh, Samuel Alito and Clarence Thomas dissented.
The White House is expected to explore alternative mechanisms to make up for lost tariff revenue while preserving trade agreements.
Section 122 of the 1974 Trade Act, which allows the president to impose tariffs of up to 15% for up to five months, is likely to be among the tools considered.
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Markets reacted positively to the Supreme Court’s decision; The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite rose between 0.1% and 0.4%.
Individual companies targeted by the tariffs also gained: Goodyear shares rose 1.3%, while EssilorLuxottica rose 1.9%. Thousands of companies around the world filed suit for the refund of taxes paid.
The decision does not affect sector-specific tariffs on steel, aluminum and other goods that are under investigation.
The UK government said it was working with the US to understand the impact of the Supreme Court’s decision on trade relations, stressing that it expects “our privileged trading position with the US to remain” and pledging to support UK businesses as more details emerge.
