The Supreme Court struck down President Trump’s sweeping tariffs on Friday, but financial markets greeted the decision with restraint as the Trump administration moved swiftly to impose a new 15% global import tax under alternative legal authority.
The ruling cast doubt on whether the administration’s recently negotiated trade deals would survive the shift to new legal grounds, leaving trading partners including China and South Korea uncertain about the stability of commerce with the United States.
The decision highlighted the administration’s determination to maintain steep import duties regardless of legal obstacles, signaling that tariff policy will remain a central feature of U.S. trade strategy even if the original legal framework has been invalidated.
Trump Plans 15% Global Tariffs After Court Voids Previous Authority
President Trump responded to Friday’s Supreme Court decision by proposing a new 15% global import tax under Section 122 of the 1974 Trade Act. The administration said the alternative legal authority would allow it to maintain steep tariffs even though the Court had invalidated the tariffs previously imposed under the International Emergency Economic Powers Act.
“The deals were not premised on whether or not the emergency tariff litigation would rise or fall,” U.S. Trade Representative Jamieson Greer said in a CBS News interview Sunday. “I haven’t heard anyone yet come to me and say the deal’s off. They want to see how this plays out.”
The shift left trading partners uncertain about the durability of the agreements negotiated over the past year. Some stood to benefit while others faced potential tariff increases.
Markets Show Restraint
U.S. stock futures fell early Monday, with S&P 500 contracts down 0.6% and Dow Jones Industrial Average futures down 0.5%. Oil prices fell and the U.S. dollar weakened against the Japanese yen and the euro.
Asian markets advanced, with Hong Kong’s Hang Seng index gaining 2.4%, as traders saw the new tariff structure as less disruptive than prolonged legal uncertainty.
Winners and Losers Emerge
The new 15% global rate could bring relief to China and some other Asian countries that faced higher duties under Trump’s previous tariffs. Japan, the United Kingdom, and other U.S. allies could see tariffs rise under the new legal framework.
China’s Commerce Ministry said it was conducting a comprehensive assessment of the ruling and urged the Trump administration to lift its tariffs entirely. In a statement carried by the state-run Xinhua news agency, an unnamed ministry spokesman said the tariffs “not only violate international economic and trade rules but also contravene domestic laws of the United States, and are not in the interests of any party.”
International Concerns and Treasury Position
South Korea’s trade minister, Kim Jung-kwan, warned Monday that further uncertainty could emerge if the administration continued to impose tariffs under additional legal authorities. “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 said.
South Korea agreed to hold discussions with U.S. officials to minimize any negative impact on South Korean companies, particularly those in the auto and steel sectors.
U.S. Treasury Secretary Scott Bessent said Sunday that tariff revenues would remain unchanged under the new legal structure. “Tariff revenues will be unchanged this year and will be unchanged in the future,” Bessent said in a Fox News interview, pointing to the 15% global tariffs Trump has proposed as a replacement.
On the question of refunds for import taxes already collected under tariffs now declared unlawful, Bessent said the administration would defer to the courts. “It’s out of our hands and we will follow the court’s orders,” he said.