President Donald Trump issued a warning to global trading partners on Monday, vowing to retaliate with “much higher” tariffs against any nation that attempts to use the recent U.S. Supreme Court ruling to dismantle existing trade agreements.
The ‘Buyer Beware’ Ultimatum
Writing on Truth Social, the President dismissed the court’s decision to strike down a portion of his trade levies as “ridiculous.”
He specifically targeted nations that might view the ruling as a legal loophole to exit negotiated deals.
Escalation Via Section 122
The warning follows the administration’s pivot to Section 122, a rarely used legal authority allowing for a temporary 15% import surcharge to address balance-of-payment deficits. This move aims to bypass the Supreme Court’s recent restrictions.
U.S. Trade Representative Jamieson Greer clarified that despite the judicial friction, no current partners have officially withdrawn from agreements. However, the President’s rhetoric suggests a low tolerance for any hesitation from abroad.
Global Markets Brace For Impact
International reaction has been swift and wary to the court ruling. According to Reuters, the European Commission is insisting that “a deal is a deal,” urging the U.S. to maintain the stability of last year’s transatlantic agreements.
Meanwhile, Chinese Commerce Ministry officials stated they are conducting a “full assessment” of the legal landscape, labeling unilateral tariffs a violation of international rules.
As the administration prepares to implement these heightened levies, the global community remains on edge. With the President signaling a “worse” outcome for dissenters, the path forward for international commerce appears increasingly volatile.
Benchmark Indices Lag In 2026
As of Monday’s close, the Dow Jones index rose 0.87% year-to-date, whereas the S&P 500 was 0.30% lower and the Nasdaq Composite index was down 2.62% in 2026.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, closed lower on Monday. The SPY was up 1.02% at $682.39, while the QQQ declined 1.22% to $601.41.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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