World Leaders Watch U.S. Move After Tariff Decision

() -- Governments globally responded with care following the US Supreme Court's rejection of President Donald Trump's extensive emergency tariffs, as some reaffirmed current agreements while others adopted a wait-and-see stance to assess his subsequent actions.

South Korea stated that the decision cancels the 15% "reciprocal" tax imposed on its products, while noting that it will keep discussing the execution of the trade agreement from last year. Indonesia, which has completedits dealOn Thursday, it imposed a 19% duty on its American exports, stating that it is keeping an eye on the court ruling and Trump's following action to apply a 10% worldwide tariff under another legal provision.

Although mainly hindering Trump's domestic economic plans, the court also weakened his frequent use of import tax threats to influence allies and rivals on global issues, including instability in the Middle East, sovereignty in Greenland, and purchases of Russian oil. The main issue for his foreign policy is whether he can retain this immediate influence with more limited and specific tariff powers.

Members of the European Union, which encountered a 15% so-called mutual tax, will convene anemergency meetingFrom Monday, the bloc will reevaluate its ongoing trade deal with the United States. The EU Parliament's trade committee was anticipated to vote on Tuesday to proceed with the ratification of this agreement.

We will carefully examine the consequences and adjust as needed," said French President Emmanuel Macron to reporters at an agricultural fair in Paris on Saturday. "So if that contributes to easing tensions, then that's positive. I believe we need to concentrate on reducing tensions on the international stage.

Italian Foreign Minister Antonio Tajani, as reported by the news agency Ansa, stated, "It's always positive when tariffs are eliminated, but I don't believe there will be significant changes."

A UK government spokesperson, which received the lowest reciprocal rate of 10%, stated that it will collaborate with the US administration to assess the ruling's effect on the bilateral relationship. As part of its agreement with Trump, Britain maintained favorable tariffs on steel, pharmaceuticals, and automobiles.

From the UK's point of view, the best approach, and the one the government is probably going to choose, is to remain very quiet," said Sam Lowe, a trade expert at the London-based strategic advisory firm Flint Global. "Our primary interests with the US — automobiles and steel — are not impacted by the decision.

USMCA Relief

The United States' two largest trade partners, Mexico and Canada, weresparedThe new 10% rate, with the White House stating that it is maintaining an exemption for numerous products transported under the US-Mexico-Canada Agreement. Nevertheless, this agreement is being examined this year, and Washington has indicated there will be modifications.

"We will thoroughly examine the resolution and be pleased to share our perspective," said Mexico's President Claudia Sheinbaum.

Marcelo Ebrard, Mexico's Minister of Economy and lead negotiator for USMCA, urged "caution" and noted that over 85% of Mexico's exports to the United States are not affected by tariffs, with steel, aluminum, and vehicles being taxed through other means that were not addressed by the court's decision.

Brazil's Vice President Geraldo Alckmin stated that discussions with the United States will remain ongoing, covering areas beyond tariffs, such as data centers and strategic minerals. President Luiz Inácio Lula da Silva "has consistently supported dialogue and negotiation. This remains the case," Alckmin mentioned.

Lula met with India's Prime Minister Narendra Modi in New Delhi on Saturday to talk about the decision. They both stated that they "need to examine the effects of this and wait for more information," according to a high-ranking official who spoke to reporters. The official mentioned that they did not address working together on future actions regarding US tariffs. "We haven't gotten to that point yet," he said.

Lula and Trump are set to meet in Washington during March.

China Visit

During a prolonged New Year holiday, China did not respond immediately. On the same day as the court's decision, Trump revealed plans to visit Beijing from March 31 to April 2 for a meeting with his counterpart, Xi Jinping.

The two biggest economies in the world aim to keep a trade agreement from last year that expanded past tariffs to include restrictions on exports such as rare earth materials, jet engines, and semiconductor design software. However, this time around, Trump will not hold as much immediate power during the negotiations as he did previously.

Nevertheless, White House officials stated they anticipated nations with completed agreements to uphold their commitments as the administration's new tariff approach is implemented over the next few weeks. The 10% rate is scheduled to begin on Tuesday.

Malaysia, which has not yet approved its trade agreement with the United States, also mentioned it is seeking further clarification on the progress, while Cambodia stated it will proceed with ratifying its own deal with Washington.

I anticipate that most Asian partners will move carefully, with current agreements remaining mostly intact as both parties address the implications over the next few weeks," said Daniel Kritenbrink, a partner at the Asia Group, who previously held the position of U.S. Assistant Secretary of State for East Asian and Pacific Affairs. "The administration still has various methods to create influence in ongoing trade negotiations.

In a 6-3 ruling released on Friday, the Supreme Court determined that Trump's application of a long-standing federal emergency powers law to implement his so-called reciprocal tariffs was illegal. Trump utilized the International Emergency Economic Powers Act, commonly referred to as IEEPA, in April to impose taxes on numerous US trading partners, with rates varying from 10% to 50%.

Trump’s Defiance

Following the decision, Trump acted swiftly on Friday to protect his trade plans by unveiling intentions to implement a 10% worldwide tariff on imported products. The updated baseline tax, outlined in Section 122 of the Trade Act of 1974, provides the president with the power to levy tariffs independently, although this unproven legal clause restricts the duration of the duties to 150 days.

The possibility of stricter measures is causing hesitation among Asian countries, most of which depend on American consumers to purchase their products. New challenges are adding more complexity to business operations and sparking new doubts about previously agreed-upon deals, as stated by Deborah Elms, the head of trade policy at the Hinrich Foundation.

The uncertainty for trade partners is actually greater than it was previously," Elms stated. "This uncertainty is going to continue affecting many foreign governments throughout the weekend.

As per an economic estimate, the U.S. government has already gathered approximately $170 billion in tariffs implemented by Trump under the IEEPA.

Many importers are preparing for what might be a long fight to recover those payments.

At a press conference on Friday, Trump defiantly addressed the justices' ruling, suggesting that anyrefund processwould become entangled in court proceedings for many years and stated he would utilize his other, more legally sound tariff powers to achieve comparable or even greater results.

We are moving ahead, and we will be able to generate more revenue, eliminating any uncertainty," he stated at the White House. "The figures could be much higher than the hundreds of billions we have already collected.

With support from Daniela Wei, Netty Ismail, Heesu Lee, Nectar Gan, Ben Otto, Suttinee Yuvejwattana, Fran Wang, Ramsey Al-Rikabi, Sudhi Ranjan Sen, Phil Serafino, Gonzalo Soto, Daniel Carvalho, Jorge Valero, Ellen Milligan, Philip Aldrick, Donato Paolo Mancini and Philip J. Heijmans.

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