Global leaders and businesses react to more U.S. tariff swings
SEOUL — Governments and companies around the world raced Saturday to determine the impact of a U.S. Supreme Court decision that struck down most of President Trump’s sweeping tariffs and his response with a new round of import duties.
The latest development in a roller coaster ride of U.S. tariffs that began when Trump returned to office 13 months ago and upended dozens of trade relationships with the world’s largest economy has angered trade officials from Mexico to South Korea to South America and beyond.
South Korea’s Ministry of Commerce called an emergency meeting on Saturday to understand the new situation. Some specific exports to the US, such as automobiles and steel, were not affected by the US supreme court’s decision. Those affected will likely be covered by a new tariff imposed by the executive order Trump signed on Friday. Trump announced Saturday morning that he would increase the 10% tariff to 15%.
In Paris, French President Emmanuel Macron praised checks and balances in the United States and praised the “rule of law” during a visit to an agricultural fair in Paris: “It is a good thing in democracies to have forces and opposing forces. We should welcome that.”
But he warned against any triumphalism.
Officials have been debating the language of bilateral or multilateral agreements with the United States in recent months as they braced for new surges and Trump’s swift announcement of new tariffs.
“I note that President Trump said a few hours ago that he was reworking some measures to introduce new, more limited, but valid tariffs for everyone,” Macron said. “So we will look closely at the exact results, what can be done, and adapt.”
Mexico is preparing, adapting
Mexican Economy Minister Marcelo Ebrard called for “common sense” following the US Supreme Court decision on Friday. “We need to see where this goes,” Ebrard told reporters. “We need to see what precautions will be taken” [Washington] It will be necessary to understand how it will affect our country. “
Amid widespread concerns about tariffs in Mexico, the United States’ largest trading partner with almost $1 trillion in annual two-way trade, Ebrard warned: “I’m telling you to put yourself in zen mode. Be as calm as possible.”
When asked about the tariffs, Mexican President Claudia Sheinbaum said, “We will carefully examine his decision and then gladly give our opinion.”
Ebrard said he plans to go to the United States next week to clarify the issue.
Ebrard noted that last year, Mexico managed to fend off Trump’s threat to impose a 25 percent tariff on all Mexican imports.
But Mexico is rolling back Trump administration tariffs on imports of vehicles, steel and aluminum, among other products.
Among other effects, the Supreme Court invalidated so-called fentanyl tariffs on Mexico, China and Canada. The Trump administration said it imposed the taxes to force the three countries to crack down on trafficking in deadly synthetic opioids.
Approximately 85% of Mexico’s exports to the United States are exempt from tariffs due to the United States-Mexico-Canada Agreement. The agreement replaced the North American Free Trade Agreement and expanded the mostly free trade regime between the three countries.
The tripartite agreement is planned to be put under joint review as of July 1. This date marks six years since the agreement was signed during Trump’s first term as president.
In Ciudad Juárez, Mexico, on the Texas border, Sergio Bermúdez, president of an industrial parks company, discussed Trump’s plan for a new tariff. “He says a lot of things, and most of them are not true. Every business I know is doing analysis and trying to understand how this is going to affect them,” Trump said.
The impact can be felt especially in Juarez: Much of its economy depends on factories producing goods to be exported to consumers in the United States, the result of decades of free trade between the United States and Mexico.
Last year’s policy swoon in the United States has led many global business leaders to tread cautiously, as they struggled to foresee and see that investments would take a hit.
Alan Russell, CEO of Tecma, which helps American businesses set up operations in Mexico, has seen his business become increasingly complex in the past year; his company’s workload quadrupled as he dealt with new import requirements. He is worried that the USA’s latest moves will make things even more difficult.
American Russell said, “We wake up with new challenges every day. The word ‘uncertainty’ has become our greatest enemy.” “The hardest part was not being clear what the rules were today or what would happen tomorrow.”
‘Good decision’
Swissmem, Switzerland’s leading technology industry association, praised the Supreme Court decision as a “good decision” and wrote about X that its exports to the US fell 18% in the fourth quarter alone; During this period, Switzerland faced much higher US tariffs than most neighboring countries in Europe.
“High tariffs have seriously damaged the technology industry,” said Swissmem President Martin Hirzel said in xwhile acknowledging that the dust is far from settled. “But today’s decision has not achieved anything yet.”
Times staff writer Patrick J. McDonnell in Mexico City contributed to this report, as did Associated Press writers Tong-Hyung Kim in Seoul and Megan Janetsky in Mexico City. AP writers María Verza and Fabiola Sánchez in Mexico City, Samuel Petrequin in London and Jamey Keaten in Lyon, France, also contributed.
