US SC blocks Trump tariffs, but it may return another way – here’s how | World News

Washington: The United States Supreme Court declared President Donald Trump’s tariff policy illegal on February 22, but the bigger story is that the mandates could continue in other ways. The decision blocked the use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping reciprocal tariffs and country-specific taxes.

Still, trade experts say the policy is far from dead and could reemerge in different forms. They say Trump is rarely a leader who accepts resistance easily. From diplomatic threats to brazen economic moves, their actions have repeatedly pushed the boundaries.

The move that shook the world

The origins of the debate date back to the list of tariffs announced last year during a high-profile event held in the Rose Garden on what the US administration called “Liberation Day”. The measures targeted many trading partners and were presented as a way to force fairer deals. In the months that followed, additional mandate threats against European countries that refused to support Trump’s ambitions for Greenland further added to the turmoil.

These moves shook the global trading system. Economists have warned that growth could slow if conflict escalates. Businesses across continents were scrambling to understand how the new rules would affect their supply chains.

However, anyone expecting a return to the old trading environment may be disappointed.

Why might tariffs still remain?

The court order merely rescinds additional mandates imposed after Trump returned to office last year using emergency authority. After intense negotiations following the Independence Day announcement, the average tariff rate faced by countries selling goods in the United States was pegged at around 15 percent.

In theory, the decision greatly reduces this figure. However, the effective rate still remains above 6 percent. This is almost three times higher than the normal level seen at the beginning of 2025. This is because some other tariff mechanisms are also active.

For importers, the sudden change may not seem like much. Most of the revenue collected under the International Emergency Economic Powers Act last year amounted to an average tax of about 11 percent. In other words, the system already contained multiple layers of payload.

Supply chains are changing

Businesses spent months adjusting. Many companies have moved their supply chains away from the countries facing the highest tasks. The change affected products such as clothing and toys imported from China.

In some cases, companies bore the extra costs themselves. In others, they share the load among suppliers. As a result, the impact on inflation in the United States has been relatively limited.

Income also played an important role. Import duties generated nearly $240 billion in revenue last year before stabilizing. This revenue stream gives the administration a strong incentive to keep the system alive in some way.

Before the decision, Trump indicated he was ready to respond. He said his team would find another way if the courts intervened.

Legal paths ahead

Business lawyers say several options are available. The administration may open new investigations and impose taxes within the scope of other commercial laws through these channels. These procedures are slower and require more legal review but can lead to similar results.

For importers, this creates a strange window of opportunity. While the situation is uncertain, some may rush shipments to the US. But the risk is clear. Future decisions may still change the duty structure for specific countries or products.

Recently, the White House’s tone has softened somewhat, especially as concerns about the cost of living rise.

Plans for higher taxes on furniture have already been postponed. Some taxes on imported food products are also under review. More relief could emerge if falling income reduces the chances of sending so-called “tariff dividend checks” to American households.

Uncertainty for businesses

Despite these changes, uncertainty remains high. Small importers feel the pressure the most. Many don’t have the resources to move supply chains quickly or negotiate better deals with suppliers. Export-oriented businesses around the world face the same concern.

What does it mean for global trade?

The ripple effects extend far beyond the United States. Last year, Asian manufacturers in countries such as Thailand and Vietnam benefited from tariffs on Chinese goods as American companies moved to switch suppliers.

China still found ways to improve. Demand for technology hardware has increased in the United States during the AI ​​boom.

At the same time, Beijing has intensified its focus on emerging markets in Africa and attracted the interest of partners such as Canada.

In many ways, this disruption pushed countries to establish new commercial relations. Last year’s global trade growth may have even outpaced overall economic growth.

The question now is whether this momentum can continue in a year filled with new uncertainties.

Frequent policy changes have also affected Washington’s image as a reliable partner. Allies such as the European Union and the United Kingdom are monitoring the situation closely. Some analysts say repeated shocks could bring them closer together and less dependent on U.S. trade policy.

Many issues are not yet clear. Countries like Japan had reached agreements offering relief from the toughest tariffs in exchange for more investment in the United States. It is now unclear what these agreements will be.

Financial markets will also need to adapt to this new phase.

The United States Supreme Court may have taken away one of Donald Trump’s powerful tools. The impact of trade policy is still visible in global trade. Over the past year, uncertainty has become part of the negotiation strategy.

Now the rest of the world is adapting. Governments and businesses are learning how to cope and sometimes even profit from it.