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% — 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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