Tariff ruling won't end uncertainty

The US Supreme Court's decision to strike down a large swath of President Donald Trump's tariffs has weakened his ability to threaten and impose tariffs at a moment's notice, but it won't end gnawing uncertainty for trade partners or companies.

- Andrea Shala

Mr Trump responded within hours to the ruling on Friday, slapping a new 10% tariff on all imports and ordering new trade investigations that could lead to additional levies in months, while insisting that trade and investment deals reached with nearly 20 countries - most with higher tariffs — should remain untouched. Less than 24 hours later, he raised the rate of the new tariff to 15% — the maximum level allowed under the law.

Wendy Cutler, a former US trade official and senior vice president at the Asia Society Policy Institute, said Mr Trump's rapid-fire change was emblematic of the president's desire - and ability - to keep trading partners on their toes.

"The uncertainty, in his view, just gives him enormous additional leverage beyond the actual tariffs. Because people are worried about what he'll do."

But Ms Cutler and other trade experts agree Mr Trump's wings have been clipped. The 10% replacement tariff lasts only 150 days, and new tariffs imposed under other statutes will take longer to implement, robbing the president of the "anytime, anywhere for any reason" cudgel he used to impose tariffs before his use of the International Emergency Economic Powers Act was nixed.

"He's lost his favourite tool," Ms Cutler said. "Particularly for foreign policy matters and things that irk him on other countries that have nothing to do with trade, he's lost the ability to offer a credible threat."

William Reinsch, a former senior US government official who is now with the Center for Strategic and International Studies, said the Supreme Court's solid 6-3 ruling diminished Trump's ability to threaten other countries.