The U.S. Supreme Court rejected the comprehensive tariffs, so Trump quickly imposed new taxes! Economists warn: the U.S. economy may become the biggest loser.

Last Friday's ruling by the Supreme Court of the United States overturned President Trump's comprehensive tariff policy, but this does not end the turmoil in trade tariffs. Economists say that the aftermath of the ruling may further strain global trade relations, and the US economy itself may ultimately be the one to bear the brunt. In this 6-3 ruling, the Supreme Court found that Trump's actions last April to implement large-scale tariffs under the International Emergency Economic Powers Act lacked legal authorization. Following the ruling, Trump immediately imposed tariffs of up to 15% on several US trading partners, which took immediate effect, further escalating the already tense global trade situation. EU leaders expressed disappointment with the new tariffs, believing that the shift in US policy would disrupt the trade agreements reached with the EU and the UK last year. On Monday this week, the EU once again postponed a key vote on its agreement with the US. The international resistance to Trump's latest tariff threat highlights widespread dissatisfaction with his erratic trade policies. This may prompt foreign governments to reduce trade with the US and lead to companies scaling back expansion, investment, and hiring plans. The ultimate result may drag down the US economy. "This changes the way global trade is conducted with the largest economy, and this will have economic consequences," said Mike Reed, head of US economics at the Royal Bank of Canada, referring to the Supreme Court's ruling and the subsequent push for new tariffs. Negative effects highlighted Mark Zandi, chief economist at Moody's Analytics, believes that this trade war spectacle is likely to create a cautious atmosphere among businesses and foreign governments, which "will only have a negative impact on the US economy." "Businesses don't know what will happen next," Zandi said. "They will reduce investment, reduce hiring, and their expansion plans will be more cautious." This will limit growth in the US. The economist pointed out that foreign governments may also make similar responses in the increasing uncertainty, leading them to "continue to distance themselves from the US." "They are certainly very anxious about this," Zandi said. "The perception of the US by the outside world is increasingly leaning towards the fact that we are a poorly managed economy, objectively, they are right. The current situation is a bit chaotic, and it seems to be getting worse." This perception may lead to all parties seeking to shift trade away from the US to other trading partners, including China. Chinese customs data show that in December last year, exports increased by 6.6% year-on-year in US dollars, exceeding analysts' expectations and setting a record for the annual trade surplus. Meanwhile, import growth also reached its fastest pace in three months. Trump's trade tariffs US Trade Representative Jamison Greer said that the Trump administration will continue to implement its trade policy and plans to use various provisions of the Trade Act of 1974. To justify the validity of the new tariffs implemented this weekend, Trump is invoking Section 122 of the Trade Act. However, the validity of this provision is only 150 days, until mid-July, and it will need congressional approval to continue thereafter. However, the government may also simultaneously use Sections 232 (national security provisions) and 301 (targeting unfair trade practices) of the Trade Act to supplement the tariffs under Section 122. This means that the US may continue to impose tariffs on trading partners for at least the next few years. There are also views that investors and economists do not need to sound the alarm temporarily. Citigroup economist Veronica Clark stated in a report to clients that the implementation of new tariffs "in the short term means that effective tariff rates or our inflation forecasts are unlikely to change much." "In the future, tariffs based on Sections 301/232 may affect the prices of certain goods, but the details are highly uncertain," Clark wrote. "While the 10% tariff under Section 122 may lower effective tariff rates by 3-4 percentage points, the 15% tariff should keep effective tariff rates basically unchanged (and may even decrease by about 1 percentage point)." Although the overall impact of the new tariffs is still uncertain, Zandi said that there are several things that are clear. "The US is distancing itself from the world, and now the world is starting to distance itself from the US," the economist said. "Deglobalization is a drag on the economy, and ultimately, the outcome will be a weakened US economy."