Trump insists trade deals safe after Supreme Court ruling upends tariff authority, but partners arent so sure

President Donald Trump defended his tariff agenda during his State of the Union address Tuesday, even as a Supreme Court ruling striking down his emergency tariffs cast fresh confusion over the raft of trade deals negotiated with global partners.

The court ruled last Friday that the president had exceeded his authority by imposing tariffs on goods from nearly every country in the world under the International Emergency Economic Powers Act (IEEPA). Trump has said he planned to do so again within the bounds of the law.

Almost immediately after, Trump replaced it with a 10% tariff under Section 122 of the Trade Act of 1974 that took effect on Tuesday. He had also threatened to increase it to 15% tariffs under Section 122, but it is unclear when they would take effect.

The ruling has raised questions about bilateral trade agreements structured around IEEPA tariff rates, prompting foreign governments to reassess their positions.

″[Trading partners] made concessions in exchange for specific tariff treatment that was grounded in IEEPA. That legal basis no longer exists, said Johannes Fritz, CEO of the St.Gallen Endowment for Prosperity through Trade.

“Whether the administration can reconstruct those deals under Section 301 or other authorities, remains to be seen, but that will take time and new legal processes,” Fritz added.

Section 301 of the Trade Act of 1974 requires the U.S. Trade Representative to conduct a formal trade investigation into unfair trade practices before imposing tariffs.