UK trade deal with US at risk after Supreme Court ruling on Trump’s tariffs | World | News

US President Donald Trump claims a US Supreme Court’s ruling on his decision to impose worldwide tariffs would be very difficult to reverse, potentially threatening deals he made with the UK. The ruling, which comes after challenges from businesses in 12 mostly Democrat-run states, invalidates the broad tariffs that formed a central pillar of Mr Trump’s second-term trade policy.

The court noted that “no President has invoked [IEEPA] to impose any tariffs, let alone tariffs of this magnitude and scope,” and called the measures an overreach of executive power.

Writing on social media, Trump said: “It would take many years to figure out what number we are talking about and even, who, when, and where, to pay.”

“It would be a complete mess, and almost impossible for our Country to pay”, he added.

In theory, the ruling jeopardises the trade agreements the Trump administration has secured with the likes of the UK and the European Union, which were negotiated in the context of Mr Trump’s “reciprocal” tariffs.

The White House is widely expected to turn to a raft of other tools to replace the IEEPA tariff revenue and keep trade deals in place.

In the first instance, these are likely to include Section 122 of the 1974 Trade Act, which allows the President to impose tariffs of up to 15% for up to five months.

The court’s decision was supported by six justices, including three liberals: Ketanji Brown Jackson, Elena Kagan, and Sonia Sotomayor, and three conservatives: Amy Coney Barrett, Neil Gorsuch, and John Roberts.

Justices Brett Kavanaugh, Samuel Alito, and Clarence Thomas dissented.

The White House is expected to explore alternative mechanisms to replace the lost tariff revenue while preserving trade agreements.

Section 122 of the 1974 Trade Act, which allows the President to impose tariffs of up to 15% for up to five months, is likely to be among the tools considered.

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Markets reacted positively to the Supreme Court’s ruling, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite rising between 0.1% and 0.4%.

Individual companies targeted by the tariffs also saw gains: Goodyear shares rose 1.3%, while EssilorLuxottica increased 1.9%. Thousands of other companies worldwide have filed lawsuits seeking refunds on duties paid.

The ruling does not affect sector-specific tariffs on steel, aluminum, and other goods, which remain under investigation.

The UK government has said it is working with the US to understand the impact of the Supreme Court’s decision on trade relations, emphasizing that it expects “our privileged trading position with the US to continue” and pledging to support UK businesses as further details emerge.