US Supreme Court strikes down Trump tariffs: Global reactions follow

US SC ruling negates US tariffs

The US Supreme Court on Friday delivered a historic blow to President Donald Trump, ruling that his sweeping global tariffs were illegal. The 6–3 decision struck down the use of the International Emergency Economic Powers Act (IEEPA), which Trump had invoked to impose broad duties on imports from multiple countries, marking the most significant setback for his trade agenda since returning to the White House.

While the ruling does not affect sector-specific duties on steel, aluminum, and other goods, it undermines the administration’s attempt to use emergency powers to impose tariffs on virtually all US trading partners, including Mexico, Canada, and China.

Chief Justice John Roberts, writing for the majority, said: "IEEPA contains no reference to tariffs or duties." Conservative Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissented. The decision upholds lower court rulings that Trump overstepped his authority, with lower courts having blocked the across-the-board levies last May.

KPMG chief economist Diane Swonk warned, "tariffs ruled illegal can be rapidly reinstated via other levers," adding: "Financial markets rallied on the news, but that is premature."

Canada: Trump tariffs ‘unjustified’ but pain persists

Canada welcomed the ruling, calling it proof that the US tariffs were "unjustified," but noted that sector-specific measures affecting steel, aluminum, and autos remain in force.

Canada's Minister for International Trade, Dominic LeBlanc, said businesses impacted by those measures still need "support." He added that Canada would continue working with the US "to create growth and opportunities on both sides of the border."

The Canadian Chamber of Commerce cautioned that Friday’s ruling should not be seen as "a reset of US trade policy." President Candace Laing said: "Canada should prepare for new, blunter mechanisms to be used to reassert trade pressure, potentially with broader and more disruptive effects."

Germany: Ruling a ‘strong signal’ for trade rules

German industry also reacted positively to the ruling. BDI board member Wolfgang Niedermark described it as "a strong signal for the rules-based trading system" and said: "The verdict is clear proof of the separation of powers in the USA still going strong."

He noted that export-dependent Germany had been hit by US tariffs, with goods from cars to chemicals to industrial equipment losing competitiveness, leading German exports to the US to fall almost 10 percent last year.

Niedermark called for more action to lift "unnecessary economic burdens on both sides of the Atlantic," while warning that "the US administration is expected to explore and use alternative means to maintain existing tariffs or introduce comparable protective measures."

EU urges clarity on Trump tariff ruling

The EU said Friday it is carefully analysing the US Supreme Court ruling that found President Donald Trump exceeded his authority in imposing broad tariffs.

"We take note of the ruling... and are analysing it carefully," EU trade spokesman Olof Gill said.

"We remain in close contact with the US administration as we seek clarity on the steps they intend to take in response to this ruling," he added.

"Businesses on both sides of the Atlantic depend on stability and predictability in the trading relationship."

European Parliament trade committee head Bernd Lange welcomed the decision, saying "the judges have shown that even a US president does not operate in a legal vacuum," and plans an urgent meeting Monday to assess implications for the EU-US tariff deal.

UK

Britain's government said it plans to continue working with Washington to see how the decision will affect the trade deal reached last year between the two countries.

"We will work with the administration to understand how the ruling will affect tariffs for the UK and the rest of the world," a government spokesperson said, adding that the UK expects its "privileged trading position with the US to continue".

The close allies agreed a trade deal in May that lifted tariffs on UK steel and aluminum products and slashed levies on British car exports from 27.5 percent to 10 percent.

Global repercussions

While Trump has long used tariffs as a lever for pressure and negotiations, he made unprecedented use of emergency economic powers under IEEPA upon returning to the presidency last year to slap new duties on virtually all US trading partners.

These included "reciprocal" tariffs over trade practices that Washington deemed unfair, alongside separate sets of duties targeting major partners Mexico, Canada and China over illicit drug flows and immigration.

The tariffs have sent nations scrambling to negotiate quick trade deals with Washington to mitigate the impact of the levies, and often pledging more investment in the US economy.

In the latest example, the United States and Indonesia finalized a trade deal on Thursday that set a 19-percent tariff on Indonesian goods entering the United States. The Southeast Asian country had been threatened with a potential 32-percent levy prior to the agreement.

(With inputs from agencies)