Washington: The Supreme Court of the United States on February 22 declared President Donald Trump’s tariff policy illegal, but the bigger story is that the duties may still continue through other routes. The ruling blocked the use of International Emergency Economic Powers Act (IEEPA) to impose sweeping reciprocal tariffs and country-specific duties.
Even so, trade experts say the policy is far from dead and could reappear in different forms. They say Trump has rarely been a leader who accepts resistance easily. From diplomatic threats to brazen economic moves, his actions have repeatedly pushed boundaries.
The move that rocked the world
The controversy traces back to the tariff list unveiled last year during a high-profile event in the Rose Garden on what the US administration called “Liberation Day”. The measures targeted several trading partners and were presented as a way to force fairer deals. In the months that followed, threats of additional duties against European countries that refused to support Trump’s ambitions regarding Greenland added to the turmoil.
Those moves rattled the global trading system. Economists warned that growth could slow if the confrontation escalated. Businesses across continents scrambled to understand how the new rules would affect their supply chains.
Anyone expecting a return to the old trading environment, however, may be disappointed.
Why tariffs may still stay
The court decision only cancels the additional duties introduced after Trump returned to office last year using emergency authority. After intense negotiations following the Liberation Day announcement, the average tariff rate faced by countries selling goods in the United States had settled around 15 percent.
In theory, the ruling cuts that figure drastically. But the effective rate still stays above 6 percent. That is almost three times higher than the normal level seen at the beginning of 2025. The reason is several other tariff mechanisms are active.
For importers, the immediate change may not feel big. Much of the revenue collected under the International Emergency Economic Powers Act last year roughly matched an average duty of about 11 percent. In other words, the system already included multiple layers of charges.
Supply chains shift
Businesses have spent months adjusting. Many companies shifted their supply chains away from countries facing the highest duties. The shift affected goods such as clothing and toys imported from China.
In some cases, companies absorbed extra costs themselves. In others, they spread the burden across suppliers. As a result, the impact on inflation inside the United States stayed relatively limited.
Revenue has also played an important role. Import duties generated about $240 billion last year before stabilising. That stream of income gives the administration a strong incentive to keep the system alive in some form.
Before the ruling, Trump indicated that he was ready to respond. He said that his team would find another way if the courts intervened.
The legal paths ahead
Trade lawyers say several options exist. The administration could open new investigations under other trade laws and introduce duties through those channels. These procedures are slower and involve more legal scrutiny, but they could lead to similar outcomes.
For importers, this creates a strange window of opportunity. Some may rush shipments into the United States while the situation is unclear. But the risk is obvious. Future decisions could still change the duty structure for specific countries or products.
Recently, the tone from the White House has softened slightly, especially as concerns about the cost of living grow.
Plans for higher duties on furniture have already been delayed. Some charges on imported food products are also under review. Further relief could appear if falling revenue reduces the chances of sending so-called “tariff dividend checks” to American households.
Uncertainty for businesses
Even with these changes, uncertainty is still high. Smaller importers feel the pressure the most. Many do not have the resources to quickly move their supply chains or negotiate better deals with suppliers. Businesses around the world that depend on exports are facing the same concern.
What it means for global trade
The ripple effects extend far beyond the United States. When American companies rushed to replace suppliers last year, Asian producers in countries such as Thailand and Vietnam benefited from the tariffs placed on Chinese goods.
China still found ways to thrive. Demand for technology hardware surged in the United States during the artificial-intelligence boom.
At the same time, Beijing intensified its focus on emerging markets in Africa and attracted interest from partners such as Canada.
In many ways, the disruption pushed countries to build new trading relationships. Global trade growth last year may even have outpaced overall economic expansion.
The question now is whether that momentum can continue in a year filled with fresh uncertainty.
Frequent policy changes have also affected Washington’s image as a reliable partner. Allies such as the European Union and the United Kingdom are keeping a close eye on the situation. Some analysts say repeated shocks could push them closer to each other and make them less dependent on US trade policy.
Several issues are still not clear. Countries such as Japan had reached deals that offered relief from the toughest tariffs in return for more investment in the United States. Now it is not clear what will happen to those agreements.
Financial markets will also need to adjust to this new phase.
The Supreme Court of the United States may have taken away one strong tool from Donald Trump. The impact of his trade policy is still visible in global trade. Over the past year, uncertainty became part of the negotiation strategy.
Now the rest of the world is adjusting. Governments and businesses are learning how to deal with this situation and sometimes even gain from it.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
