'Face obnoxious tariffs': Trump warns countries against abandoning trade deals
What's the story
United States President Donald Trump has warned countries against backing out of recently negotiated trade agreements. This comes after the US Supreme Court struck down his global tariffs. In a series of posts on Truth Social, Trump said any country "that wants to 'play games' with the ridiculous Supreme Court decision" will face higher tariffs. "And worse, than that which they just recently agreed to. BUYER BEWARE!!!" Trump wrote on Truth Social.
Legal strategy
Trump's interpretation of the Supreme Court ruling
He also hinted at possibly imposing new license fees on trading partners but didn't provide details. In another post, he vowed to impose new "obnoxious" tariffs after the Supreme Court overturned his economic policy. "The court has also approved all other Tariffs, of which there are many, and they can all be used in a much more powerful and obnoxious way, with legal certainty, than the Tariffs as initially used," he said.
Trade tensions
New import duty to come into effect
The verdict delivered on Friday reversed the president's contentious economic policy, causing Trump to retaliate by signing an executive order Friday night saying that he could bypass Congress and levy a 10% tax on global imports. Just a day later, Trump announced on Truth Social that he will raise the global duty to 15% "effective immediately." The new duty will come into effect at 12:01am EST on Tuesday.
Countries
European Parliament froze ratification of its trade deal
Trump's warning came as countries around the world indicated they were evaluating how tariffs and trade treaties will be affected by the ruling. On Monday, the European Parliament froze ratification of its trade deal with the US amid concerns that Trump's latest tariff broadside breaches the terms of the transatlantic accord that was struck last summer. India had also said that it would defer previously scheduled talks to finalize a recent trade agreement.
Investigation plans
Potential for new tariffs and legislative challenges
US Trade Representative Jamieson Greer said over the weekend that the administration plans to open new Section 301 investigations into alleged unfair trade practices by several countries. This could lead to more tariffs. Meanwhile, a group of 22 Democratic senators has introduced legislation requiring refunds for all now-illegal IEEPA-based tariffs within 180 days. However, this legislation faces an uncertain path to a vote.