BANGKOK (AP) — A landmark ruling by the U.S. Supreme Court against former President Donald Trump’s tariff regime has sent ripples across the global economic landscape, triggering cautious responses from major trading partners and creating fresh uncertainty in international markets.
The court’s decision, delivered Friday, invalidates sweeping tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in April 2025. This judicial intervention potentially unravels complex trade arrangements negotiated over the past two years, forcing a comprehensive reassessment of U.S. trade policy direction.
China’s Commerce Ministry announced it is conducting a “thorough evaluation” of the legal development. An unnamed ministry spokesperson reiterated Beijing’s consistent position that “there are no winners in trade wars,” emphasizing that Trump’s measures “not only violate international economic and trade rules but also contravene domestic laws of the United States.” The statement urged Washington to lift unilateral tariffs imposed on trading partners.
In response to the judicial setback, Trump proposed implementing a new 15% global tariff utilizing Section 122 of the 1974 Trade Act, demonstrating his administration’s determination to maintain protectionist trade policies through alternative legal mechanisms.
The ruling creates a divergent impact across U.S. trading partners. While Asian nations like China and South Korea potentially face reduced import duties, allies including Japan and the United Kingdom might confront increased tariffs under the new proposed structure.
U.S. Trade Representative Jamieson Greer affirmed that existing trade agreements remain intact regardless of legal challenges. “The deals were not premised on whether or not the emergency tariff litigation would rise or fall,” Greer stated during a CBS News interview, noting that no trading partners had yet attempted to withdraw from agreements.
South Korean Trade Minister Kim Jung-kwan expressed concerns about prolonged uncertainty if the administration continues implementing tariffs through alternative statutes. “Given the uncertainty over future U.S. tariff measures, the public and private sectors must work together to strengthen our companies’ export competitiveness and diversify their markets,” Kim noted, adding that Seoul would pursue “amicable” discussions with U.S. officials to minimize negative impacts on Korean exporters.
U.S. Treasury Secretary Scott Bessent projected confidence that tariff revenues would remain stable despite the legal shift, pointing to the proposed 15% global tariff as replacement mechanism. The administration will defer to judicial authorities regarding potential refunds for import taxes already collected under the invalidated tariffs.
Financial markets exhibited mixed reactions, with U.S. futures declining early Monday while Asian shares mostly advanced. Hong Kong’s Hang Seng index gained 2.4%, reflecting the complex interplay of legal, political, and economic factors reshaping global trade dynamics.