As the U.S. Supreme Court ruled that President Donald Trump's reciprocal tariff was unlawful, expectations are that there will be no meaningful moves in the international community to reverse trade agreements concluded with the United States.
According to the Financial Times (FT) on the 21st local time, international trade experts analyzed that it is unlikely that governments will try to roll back trade agreements concluded with the Trump administration.
Separate from the legal issues, the Trump administration still holds negotiating leverage in the international community, and the United States wields formidable influence especially in non-trade areas such as defense and security cooperation.
The previous day, the U.S. Supreme Court ruled unlawful only the tariffs imposed under the International Emergency Economic Powers Act (IEEPA). As item-by-item tariffs based on Section 232 of the Trade Expansion Act and Section 301 of the Trade Act—▲ automobiles ▲ steel ▲ semiconductors ▲ medical supplies—remain in effect, some note that high-tariff retaliation on key industries is still possible.
In practice, the European Parliament is set to discuss whether to delay ratification of a trade agreement with the United States, but considering the security situation, including the war in Ukraine, in addition to the automobile industry, the prevailing view is that it will not expand into a full reexamination.
Simon Evenett, a professor at the International Institute for Management Development (IMD), said, "Rather than weakening the Trump administration's threats, the Supreme Court ruling merely replaced them with other threats."
However, some raised the possibility that countries may try to use the Supreme Court ruling in negotiations.
Pratik Dattani, founder of the think tank Bridge India, said, "This ruling will strengthen the negotiating power of trading partners such as India," adding, "Countries waiting to see how the balance of power in the U.S. Congress shifts after the Nov. midterm elections may slow the pace of negotiations."
Earlier, President Trump reimposed a 10% across-the-board tariff under Section 122 of the Trade Act and, a day later, announced a plan to raise it to 15%. The measure is valid for 150 days without additional congressional approval.