The US Supreme Court has dealt a damaging blow to Donald Trump's tariff strategy, ruling that much of his tariff regime was illegal. The decision has thrown global trade into fresh confusion, leaving allies who struck deals with Washington wondering where they stand.
Countries such as Japan, the UK and the European Union had raced to hammer out bilateral agreements, offering concessions in exchange for lower tariffs. But now, almost every nation—including those that reached deals—will face a flat 15% tariff on most exports to the US from Tuesday. This leaves countries like the UK potentially worse off, while rivals like China and India, which did not compromise, receive significant tariff cuts.
The EU has paused ratification of its deal, demanding clarity that does not exist. Japan's ruling party has called the situation a 'real mess'. Negotiations with India have been delayed, and analysts expect talks to be on hold until the US figures out its own legal position. Trump, furious at the court's decision, is scrambling to find new legal avenues to impose tariffs, threatening 'much more powerful' measures.
