US Supreme Court ruling ushers in new uncertaintiesGlobal economy had broadly held up to Trump tariffsBilateral US trade deals may now be reviewedLONDON, Feb 21 — While the US...
While the US Supreme Court’s ruling yesterday against President Donald Trump’s use of tariffs marks a clear setback for his use of trade levies as an economic weapon, analysts say it offers little immediate relief for the global economy .
— AFP picand enjoy FREE RM10 & when you sign up using code VERSAMM10 with min. cash of RM100 today! T&Cs apply.Global economy had broadly held up to Trump tariffsLONDON, Feb 21 — Instead, they expect another bout of activity-crimping confusion combined with near-certainty that Trump will seek other means to replace the raft of global tariffs now struck down as unlawful. In the meantime, a long list of uncertainties remains -including what new tariffs Trump will seek to impose, whether the funds from the annulled levies will have to be refunded, and whether territories that entered deals with the US to mitigate their impact will see those pacts reopened for review. Responding to the ruling, Trump announced new global tariffs of 10 per cent for an initial 150-day period and acknowledged it was not clear if or when there would be any refunds. “In general, I think it will just bring in a new period of high uncertainty in world trade, as everybody tries to figure out what the US tariff policy will be going forward,” said Varg Folkman, analyst at the European Policy Centre think tank.Economists at ING bank agreed: “The scaffolding has come down, but the building remains under construction. No matter how today’s ruling reads, tariffs are here to stay.” Friday’s ruling concerns only the tariffs launched by Trump on the basis of the International Emergency Economic Powers Act, or IEEPA, intended for national emergencies. So far, they are estimated to have brought in over US$175 billion in funds. By itself, the ruling chops the trade-weighted average US tariff almost in half from 15.4 per cent to 8.3 per cent, trade policy monitor Global Trade Alert estimated. For those countries on higher US tariff levels, the change is more dramatic. For China, Brazil and India, it will mean double-digit percentage point cuts, albeit to still-high levels.Yet no one expects this to remain the status quo: the Trump administration has served notice long before the ruling that it can and will use other legal vehicles to reimpose tariffs. At the same time, the couple of dozen countries which entered bilateral deals with the US to set tariffs and in some cases invest in the United States — will now assess whether the Supreme Court ruling gives them leverage to renegotiate. The lawmakers who must ratify the European Union’s pact with the United States will do that as soon as Monday, said Bernd Lange, chair of the trade committee of the European Parliament. “The era of unlimited, arbitrary tariffs ... might now be coming to an end,” Lange said on X. “We must now carefully evaluate the ruling and its consequences.” Britain meanwhile expects its privileged trading position with the United States to continue, the government said on Friday of the baseline 10 per cent tariff it agreed with Washington. Indeed, many countries were learning to live with Trump’s tariffs, the bulk of which were being shouldered by Americans, according to a Federal Reserve Bank of New York report released this month. In the most recent update of its regular World Economic Outlook, the International Monetary Fund forecast global growth at a “resilient” 3.3 per cent in 2026. China even reported a record trade surplus of nearly US$1.2 trillion in 2025, led by booming exports to non-US markets as its producers adapted to the Trump onslaught. Thus, some countries may choose to stick with their existing bilateral deals with the US rather than “inviting the kind of uncertainty we saw in the spring in 2025,” EPC’s Folkman said of the chaos caused by Trump’s so-called “reciprocal” tariffs. Conversely, Niclas Poitiers, research fellow at the economic think tank Bruegel, noted there were a lot of political question marks over the EU-US trade deal, in which Europe was seen to have backed down and got the short end of the stick.
Global Economy Trump Tariffs Bilateral US Trade Deals International Emergency Economic Powers Act China Trade Surplus
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chinese AI Firms Race to Release New Models During Lunar New YearAs China celebrates the Lunar New Year, Chinese AI companies are rapidly releasing new models, including DeepSeek, Bytedance, and Alibaba, to compete in the rapidly evolving AI landscape and gain market share, following the success of DeepSeek's previous models.
Read more »
Analysts: DAP Resignation Won't Trigger Election if Anwar Support RemainsPolitical analysts suggest that DAP leaders resigning from ministerial and GLC posts would be largely symbolic and not trigger a general election, as long as the party maintains its support for Prime Minister Anwar Ibrahim in Parliament. The discussion stems from DAP's potential reconsideration of its role in the unity government following its performance in the Sabah state election and calls for reforms within six months.
Read more »
US Supreme Court strikes down swath of Trump’s global tariffsThe Supreme Court's decision affirms earlier findings by lower courts that tariffs US President Donald Trump imposed under the International Emergency Economic Powers Act were illegal.
Read more »
Trump furious after Supreme Court upends his global tariffs, vows new 10% levyFeb 20 (Reuters) - OpenAI is targeting roughly $600 billion in total compute spend through 2030, a source familiar with the matter told Reuters on Friday, as the ChatGPT maker lays groundwork for an IPO that could value it at up to $1 trillion.
Read more »
Trump furious after Supreme Court upends his global tariffs, imposes new 10% levyFeb 20 (Reuters) - OpenAI is targeting roughly $600 billion in total compute spend through 2030, a source familiar with the matter told Reuters on Friday, as the ChatGPT maker lays groundwork for an IPO that could value it at up to $1 trillion.
Read more »
Trump pivots to new 10% global tariff, new probes after Supreme Court setbackIt's believed to be linked to factors such as wider diagnostic criteria and societal changes.,
Read more »