Trump warns trading partners over ‘playing games’

Following the Supreme Court’s decision to overturn his emergency tariffs under the International Emergency Economic Powers Act, US President Donald Trump warned trading partners against ‘playing games’.

He said that if certain countries were to withdraw from newly agreed trade arrangements, Washington would respond with even tougher tariffs based on other legal instruments. At the same time, he hinted at the possible introduction of new licensing fees, but gave no details.

The US will stop collecting the original tariffs at midnight and replace them with a temporary 15 per cent levy under a 1974 law.

The European Parliament has postponed its vote on the trade agreement with the US amid ongoing uncertainty. China and India are reassessing their next steps.

The tensions immediately unsettled the markets – major US indices weakened and the dollar fell against the euro and the yen.

Meanwhile, a group of Democratic senators has proposed legislation that would compel the administration to return the collected tariffs within 180 days.

(reuters, pir)