The US Supreme Court’s decision to reduce tariffs imposed by President Donald Trump has done little to ease pressure on the global economy, with analysts warning that it could increase uncertainty over future trade policy. Economists said Trump’s decision to limit the use of tariffs under emergency powers is unlikely to change the broader trajectory of global trade tensions, as Washington searches for alternative ways to impose tariffs, Reuters reports.
“In general, I think this will bring a new round of high uncertainty in world trade, as everyone is trying to figure out what U.S. tariff policy will be next,” said Varg Folkman, an analyst at the European Policy Center think tank. “In the end it’s going to look pretty much the same.”Following the decision, Trump announced new global tariffs of 10 percent for an initial 150-day period and acknowledged uncertainty over whether money collected under the canceled levy would be returned.Analysts said many questions remain unresolved, including whether new tariffs could emerge and whether countries that have negotiated deals with the US to mitigate tariff impacts can reopen those arrangements.The decision does not mark the end of tariff-driven trade policy, ING Bank economists were quoted as saying by Reuters. “The scaffolding has collapsed, but the building remains under construction. No matter how today’s judgment is read, the charges will remain in place.”The court’s decision applies only to tariffs introduced under the International Emergency Economic Powers Act (IEEPA), a law designed to respond to national emergencies. Those levies are estimated to have generated more than $175 billion in revenue.According to Global Trade Alert, the decision reduced the trade-weighted average US tariff rate from 15.4 percent to 8.3 percent. Countries facing higher tariffs – including China, Brazil and India – could see double-digit percentage-point reductions, although tariffs will remain high.Countries that have bilateral agreements with Washington to mitigate tariff impacts are now expected to assess whether the decision provides a basis for renegotiating the terms.Bernd Lange, chairman of the European Parliament’s trade committee, said lawmakers would evaluate the implications as they move toward ratifying an EU-US trade deal.“The era of unlimited, arbitrary tariffs… may now be over,” Lang said on X. “We must now carefully evaluate the decision and its consequences.”Britain, meanwhile, said it expected its preferential trade arrangements with the United States – including a baseline 10 percent tariff – to remain unchanged.Despite years of tariff disruptions, the global economy is largely stalling. A report from the Federal Reserve Bank of New York indicated that most of the burden of the tariffs has been absorbed by US consumers.The International Monetary Fund has projected global growth to be a “resilient” 3.3 percent in 2026 in its latest World Economic Outlook update.China reported a record trade surplus of nearly $1.2 trillion in 2025, supported by strong exports to markets outside the United States as producers adapted to tariff pressures.So some countries may choose to maintain existing bilateral deals rather than risk renewed instability, Folkman said, referring to the uncertainty posed by Trump’s “reciprocating” tariffs in 2025.However, Niclas Poitiers, research fellow at economic think tank Bruegel, told Reuters that political uncertainties over an EU-US trade deal remain significant.“There may be circumstances in which a deal can be reached,” he said.