Trump Warns Countries: ‘Play Games’ with US Trade Deals Will Face Higher Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump warned countries against abandoning U.S. trade agreements after the Supreme Court struck down his emergency tariffs. He signaled he could impose higher tariffs or new license fees under alternative trade laws. Markets fell amid uncertainty, while the EU delayed ratification of its trade deal with Washington.
Trump Warns Trade Partners Over Higher Tariffs – Quick Looks
- Supreme Court invalidates Trump’s emergency tariffs
- Trump vows to use alternative trade laws
- 15% temporary import duty takes effect at midnight
- EU delays vote on U.S. trade deal
- Markets fall as tariff uncertainty deepens
- China urges U.S. to remove trade barriers
- Administration may launch new Section 301 probes
Deep Look: Trump Warns Countries: ‘Play Games’ with US Trade Deals Will Face Higher Tariffs
President Donald Trump on Monday warned global trading partners that countries attempting to “play games” with the United States in the wake of a Supreme Court decision striking down his emergency tariffs would face significantly higher duties.
The warning came just days after the Supreme Court invalidated tariffs Trump imposed under the International Emergency Economic Powers Act (IEEPA), ruling that the executive branch had exceeded its authority. Despite the setback, Trump signaled he could pivot to alternative legal tools to maintain or even expand tariff measures.
In a series of posts on Truth Social, Trump accused some countries of exploiting the U.S. for years and said those reconsidering recently negotiated trade agreements could end up “much worse off.” He insisted the court’s decision left open the possibility of using other statutes to impose tariffs “in a much more powerful and obnoxious way, with legal certainty.”
New Tariff Measures and License Fees
While the administration prepares to halt collection of the now-invalidated IEEPA duties, it is simultaneously implementing a new temporary 15% import duty under Section 122 of the Trade Act of 1974. Initially announced at 10%, the rate was raised to the statutory maximum of 15% over the weekend.
The tariff is set to take effect at 12:01 a.m. EST Tuesday. At that same moment, U.S. Customs and Border Protection will stop collecting the previous emergency-based tariffs, aligning enforcement with the high court’s ruling.
Trump also floated the possibility of introducing license fees for foreign exporters seeking access to U.S. markets, though he did not offer details on scope, sectors affected, or timelines. The Office of the United States Trade Representative has yet to clarify how such fees would be structured.
Additionally, U.S. Trade Representative Jamieson Greer indicated the administration expects to launch new investigations under Section 301, targeting what it deems unfair trade practices. Such probes could pave the way for further tariff escalation.
EU Delays Trade Deal Vote
In Brussels, the European Parliament postponed a scheduled vote to ratify a major trade agreement with Washington following Trump’s announcement of the new 15% duty.
Under the proposed deal, European Union exports to the United States would face the 15% tariff, though exemptions would apply to hundreds of categories, including food products, aircraft components, pharmaceutical ingredients, and critical minerals. In exchange, the EU would eliminate tariffs on numerous American industrial exports.
The postponement underscores rising transatlantic tension and reflects broader uncertainty about Washington’s long-term trade posture.
Markets React to Tariff Uncertainty
Global financial markets responded swiftly to the renewed volatility. On Wall Street, the Dow Jones Industrial Average fell 1.34% in early trading, while the S&P 500 declined 0.65%. The tech-heavy Nasdaq Composite also dropped 0.65%.
The U.S. dollar index slipped 0.2% against major currencies, reflecting investor unease about the trajectory of U.S. trade policy and its implications for global growth.
Economists warn that prolonged tariff uncertainty could dampen business investment, disrupt supply chains, and exacerbate inflationary pressures. The port of Oakland and other major trade hubs are closely monitoring cargo flows as companies reassess logistics strategies.
Global Response and Broader Implications
China urged Washington to abandon new tariff measures, while India delayed scheduled trade talks. The European Union’s freeze on ratification highlights concerns that escalating tariffs may destabilize carefully negotiated trade frameworks.
The Supreme Court’s ruling, authored by Chief Justice John Roberts, reaffirmed judicial authority to check executive power. Trump criticized the justices in subsequent posts and suggested the court could also rule against his administration in other pending cases, including one involving birthright citizenship.
Trade analysts note that while Section 122 allows temporary tariffs for balance-of-payments concerns, it is limited in duration. Section 301 investigations, however, provide a more durable mechanism for imposing retaliatory duties following findings of unfair trade practices.
The evolving legal and political battle sets the stage for continued volatility in global trade policy. Businesses, investors, and foreign governments are now closely watching whether the administration escalates further or seeks negotiated compromises.
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