"Trump called the Court's decision "disappointing" and "unfortunate," but claimed that "almost all countries and corporations want to keep the deal that they already made," adding that the "legal power that I as president have to make a deal could be far worse for them.""
"Countries could try to suspend or renegotiate their trade deals, but that risks provoking higher tariffs from an angry White House. Or they can keep the agreements in place-even if that means their goods will get higher tariffs than other countries-and yet still be at risk of new tariffs from Trump anyway."
""It is highly likely that trade deals currently under negotiation will be put on ice," says Eswar Prasad, a professor of international trade policy at Cornell University."
The Supreme Court invalidated Trump's emergency tariffs imposed under the International Emergency Economic Powers Act, eliminating the primary incentive for several trade agreements negotiated with foreign governments. Trump responded by warning trading partners not to use this ruling as grounds for renegotiation, claiming he possesses legal authority to impose far worse terms. Multiple countries, including Indonesia, recently finalized deals involving tariff reductions in exchange for investment commitments and market access. Trading partners now face a difficult choice: attempt renegotiation and risk provoking higher tariffs, or maintain existing agreements while potentially facing additional tariffs anyway. Trade experts predict ongoing negotiations will likely stall as countries reassess their positions.
#trade-policy #tariffs #supreme-court-ruling #international-trade-negotiations #trump-administration
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]