In a swift reversal of fortunes, countries that had been hardest hit by U.S. President Donald Trump¡¯s tariffs have emerged as the biggest winners from the Supreme Court¡¯s decision to strike down his emergency levies.
China, India and Brazil are among those now seeing lower tariff rates for shipments to the U.S. after the court ruled that Trump¡¯s use of the International Emergency Economic Powers Act to impose duties was illegal. While Trump subsequently announced plans for a 15% global rate, Bloomberg Economics calculated that would mean an average effective tariff rate of around 12% ¡ª the lowest since his ¡°Liberation Day¡± tariffs were released in April.
For Asia, Morgan Stanley economists say the weighted average tariff rate will fall to 17% from 20%, with average levies on goods from China declining to 24% from 32%. Relief may be temporary as the Trump administration seeks to impose sectoral and economy-specific duties to rebuild its tariff regime.
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