RECAP/ROUND UP of Tariff Headlines following the Supreme Court's Ruling Against IEEPA Tariffs and President Trump's Response

Latest Tariff Developments and Commentary from over the Weekend:

US President Trump said on Saturday that he will increase the global tariff that was announced on Friday from 10% to 15% with immediate effect. Trump also stated that the 15% level is the maximum allowed by law and is still temporary, as Section 122 tariffs, and they will use the 150 days that the temporary tariff allows to work on issuing other legally permissible tariffs.

US officials said that tariff deal partners should honour their agreements, while USTR Greer said he sought to separate the tariff agreements from the 15% global tariff that US President Trump recently announced.

White House clarified that goods shipped under the USMCA will be exempt from the new global tariff that US President Trump announced on Friday, although risks regarding the future of the USMCA loom.

US President Trump’s new 15% flat-rate tariff is seen to most greatly benefit countries he has singled out for heavy criticism, such as China and Brazil, while allies such as the UK, EU and Japan will suffer the largest hit from the new levy, according to data analysis cited by FT.

European Parliament’s trade chief is to propose freezing the ratification of the EU’s trade agreement with the US until they receive details from the Trump administration regarding its trade policy.

French Trade Minister Forissier said he is in talks with EU counterparts regarding US President Trump’s tariffs and stated that the EU has the tools to retaliate against the tariffs, according to FT.

German Chancellor Merz said expect the tariff burden on the German economy to be reduced following the US Supreme Court decision, while he added that they will have a very clear European position on this as tariff policy is a matter for the EU, not individual member states, and he will go to Washington with a coordinated European position.

ECB President Lagarde said the latest US tariff move risks upsetting the previously negotiated “equilibrium” between the US and EU, while she added that it risks posing a new headwind for the economy. There were also separate comments from ECB’s Panetta, who said tariffs have done more damage to the US than others.

UK said it is seeking the best deal possible for UK firms over US tariffs.

Indian trade officials will postpone a trip to the US this week aimed at finalising an interim trade agreement with US, following the US Supreme Court’s ruling against US President Trump tariffs.

Hong Kong’s Financial Services Secretary Christopher Hui said the additional tariff imposed by US President Trump is a fiasco.

Japanese ruling LDP tax chief Onodera said the US tariff situation was a real mess following the US Supreme Court tariff ruling.

South Korea’s Industry Ministry said the consultation with the US on the trade deal implementation will continue in a favourable manner.

US Supreme Court Decision:

US Supreme Court struck down the Trump administration's IEEPA tariffs on Friday, as expected, in which it voted 6-3 against the tariffs, while it did not address the eligibility for tariff refunds. 

US President Trump’s Response on Friday:

US President responded to the Supreme Court decision on tariffs by immediately implementing a 10% increase on current tariffs (under Section 122) and confirmed that all Section 232 and 301 tariffs remain in place, while he stressed that they will still impose tariffs through other means, and he touted five options including the Trade Expansion Act of 1962 (Section 232), the Trade Act of 1974 (Sections 122, 201, and 301), and the Tariff Act of 1930 (Section 338). Trump said they will be implementing Section 301 probes to protect the US, with the probing period to last for five months, which will then help the US determine a fair tariff rate once the probes have been completed, as well as threatened 15-30% auto tariffs. On refunds, Trump said that if they have to refund the tariff revenue, they will be in court for the next five years and suggested the decision will "have to be litigated!" Trump also noted that some trade deals negotiated under the IEEPA do not stand, but stressed that nothing has changed with India, while trade deals that no longer stand, will be replaced by other means of tariffs. Furthermore, he said he will go in an even stronger direction now and that he can charge much more than what he was charging.

US President Trump said the tariff ruling is deeply disappointing, and he is ashamed of certain members of the court, while he added that foreign countries will be happy and dancing, but not for long and stated there are methods that are even stronger that are available to him. Trump said he is allowed to cut off all trade with a country and is also allowed to impose an embargo, while he added he can do anything he wants, but can't charge any money, and will go in a stronger direction now and could charge much more than what he was charging, mentioning sections 122, 232, 201 and 301 as other ways he can impose tariffs.

Other Responses on Friday:

US Treasury Secretary Bessent said nothing has changed on tariff revenue and trade deals, while he added that the tariff collection is closer to USD 130bln and probably not USD 175bln. Furthermore, he said they will get back to the same tariff level for countries, and it will be less direct, while he thinks that every country will honour the trade deals and would call on all countries to honour their agreements and move forward.

White House official said all countries with trade agreements now drop to a 10% tariff which will apply until new authorities and processes kick in.

US House Speaker Johnson said Congress and the White House will determine the best path forward for tariffs in the coming weeks.