Nations that negotiated trade deals with President Trump are demanding clarity from the U.S. and scrutinizing their options after the Supreme Court struck down tariffs that formed the backbone of the agreements.
Mr. Trump and his team said the deals remain in full effect, and they would backfill the tariffs canceled by the justices. Indeed, Mr. Trump swiftly imposed a global tariff of 15% under alternative authorities.
Yet the evaporation of Mr. Trump’s tariff powers under the International Emergency Economic Powers Act left trading partners wondering what’s next, and whether they can secure better terms for their companies.
Many countries had struck trade deals in principle but had not fully ratified the pacts, which largely hinged on goodies for the U.S. economy in exchange for a lower tariff rate under IEEPA.
Japan signaled it planned to abide by its commitment to invest $550 billion in U.S. projects in exchange for a 15% tariff rate. However, a senior tax official in the country’s Liberal Democratic Party stated that the ruling has sparked some confusion about how it will all work.
“To be very frank, it’s a real mess,” Itsunori Onodera told Fuji TV on Sunday.
SEE ALSO: Trump tariff agenda tripped up by Supreme Court decision
The European Commission, the executive arm of the 27-nation EU, said “a deal is a deal” and it expects the U.S. to abide by previously agreed tariff levels. The two sides had been working to finalize a deal that they hammered out last year.
The 15% tariff imposed by Mr. Trump is equal to the tariff negotiated under the deal. The EU is worried about the fluid situation, however, so it is demanding clarity.
“The current situation is not conducive to delivering ‘fair, balanced, and mutually beneficial’ transatlantic trade and investment, as agreed to by both sides and spelled out in the EU-U.S. Joint Statement of August 2025,” the commission said. “The Commission will always ensure that the interests of the European Union are fully protected. EU companies and exporters must have fair treatment, predictability, and legal certainty.”
The statement said tariffs are essentially taxes that drive up costs, and unpredictable levies would undermine confidence in markets and supply chains.
India faced an 18% tariff on its goods under a recently negotiated deal. It was supposed to send a delegation to Washington this week to solidify the terms, but it delayed the trip, citing the uncertainty around the court ruling and its implications.
Canada, meanwhile, said it was right all along about Mr. Trump’s unilateral actions.
SEE ALSO: Trump administration says it is in no rush to issue refunds to companies that paid tariffs
“The decision of the Supreme Court of the United States strengthens Canada’s position that the tariffs imposed by the United States under the IEEPA are unjustified,” Canadian trade minister Dominic LeBlanc said.
Canada faced a 35% tariff on some goods under IEEPA, so it should see some relief. However, many goods were exempt from the tariffs under the U.S.-Mexico-Canada Agreement that Mr. Trump negotiated in his first term.
North American countries are scheduled to review the USMCA in the coming months, and Canada is mostly concerned about sector-specific tariffs on its steel, aluminum and automotive industries. The Supreme Court ruling did not impact those levies.
South Korea had been working to ratify a deal with Mr. Trump that imposed a 15% tariff on its goods, down from 25%. In exchange, South Korea promised to invest $350 billion in U.S. projects.
The foreign ministry in Seoul issued a formal statement on the Supreme Court ruling, but did not say if it wanted to back out of the deal.
“The government will comprehensively review the content of the U.S. Supreme Court’s ruling and the position of the U.S. government, and will examine its future response plans in a direction that best serves the national interest,” the ministry said.
Before the ruling, South Korea seemed to be struggling to ratify the deal-in-principle it had reached with Mr. Trump. The delay infuriated Mr. Trump, who wanted to see the agreement set in stone.
His top trade official on Sunday said he expects countries to stand by negotiated deals.
“I haven’t heard anyone yet come to me and say, the deal’s off,” U.S. Trade Representative Jamieson Greer told CBS’ “Face the Nation.” “They want to see how this plays out.”
Mr. Trump issued a starker warning on Monday. He said countries that tried to mess with deals would face stiffer levies under alternative authorities.
“Any Country that wants to ‘play games’ with the ridiculous supreme court decision, especially those that have ‘Ripped Off’ the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to,” he wrote on Truth Social, intentionally using lower case letters for the Supreme Court. “BUYER BEWARE!!!”
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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