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Global trade after US Supreme Court tariff ruling | The Express Tribune
Despite judiciary restriction, structural changes in global trade by high tariffs are unlikely to be easily reversed
ISLAMABAD:
The anxiously awaited ruling of the US Supreme Court on Friday striking down the “reciprocal tariffs” represents a significant constitutional and political setback for President Trump. The tariffs, imposed under the Emergency Powers Act, had been central to his trade and foreign policy strategy. They were justified on the grounds that persistent trade deficits constituted a national emergency.
The court rejected this expansive interpretation, ruling that emergency powers cannot override the constitution’s assignment of tariff authority to Congress, leaving the president no choice but to withdraw the duties. Yet the story does not end there. Almost immediately after complying with the ruling, Trump signalled that his broader tariff agenda remains intact. While expressing strong disagreement with the decision, he issued a proclamation imposing a new 15% global tariff under Section 122 of the Trade Act of 1974. This rarely used provision allows the president to impose temporary import surcharges for up to 150 days, after which congressional approval is required for continuation.
In practical terms, the court’s decision establishes an important limit. The president cannot rely on emergency powers to impose open-ended, broad-based tariffs. However, it does not remove other statutory authorities. US trade law contains multiple instruments, each with its own procedural and legal thresholds. Nearly one-third of existing tariffs imposed under these statutes remain in force and indications from various government spokespersons are that these are likely to be expanded. The era of unrestricted emergency tariffs may have ended, but tariff activism has not.
Nevertheless, uncertainty persists. What becomes of bilateral trade arrangements negotiated while the emergency tariffs were in force? Several countries, including India and Bangladesh, entered into side agreements committing to purchase substantially larger volumes of US goods in exchange for partial tariff relief. If the legal foundation of those tariffs has been invalidated, the status of such commitments becomes unclear. The White House has stated that the United States will continue to honour its legally binding Agreements on Reciprocal Trade and expects the same from its partners.
For Pakistan, some uncertainty will remain. While the new 15% tariff places Pakistan at the same level as all other countries, questions remain about the broader trade relationship. For example, would Pakistan be required to negotiate a bilateral trade arrangement like those reached with countries such as India and Bangladesh?
There is perhaps a possible understanding related to the procurement of certain quantities of US energy products, defence equipment, and selected agricultural commodities to narrow the trade deficit and for receiving lower reciprocal tariff. However, the key question is what Pakistan receives in return, since the 15% tariff is applied globally rather than being tailoured to specific countries.
Another unresolved issue concerns the approximately $170 billion in tariffs already collected under the now-invalidated emergency measures. These duties were paid not by foreign exporters but mostly by US importers. Any refund process would likely prove complex and administratively burdensome.
Although the government may attempt to delay refund claims, the tariffs have been deemed unlawful from the outset, strengthening the legal position of claimants. The fiscal and administrative consequences could be substantial.
The court has clarified the constitutional limits of emergency authority, but the global trading system will continue to operate under the shadow of strategic tariff policy. Except for China, most countries initially adjusted to US tariff pressure rather than confront it directly.
Many are now recalibrating. The European Union and middle powers such as Canada and Australia, along with emerging blocs including BRICS, are diversifying supply chains and strengthening alternative trade corridors to reduce exposure to abrupt US policy shifts. It is not likely that the court decision would change their current readjustments away from the United States. While the judiciary may curb executive overreach, the structural changes in global trade triggered by aggressive tariff policies are unlikely to be easily reversed. Pakistan must navigate this evolving landscape with strategic caution to avoid becoming a victim of collateral damage in a broader economic confrontation.
The writer is a member of the National Tariff Policy Board. He has previously served as Pakistan’s ambassador to WTO
Business
Asian stocks today: Markets trade in green after US SC’s blow to Trump’s tariffs; HSI jumps over 2% – The Times of India
Asian markets inched higher on Monday after the US Supreme Court invalidated a major part of President Donald Trump’s tariff framework, a policy that had shaken the global economy since last year. Hong Kong’s HSI climbed more than 2% or 579 points reaching 26,992 with ecommerce heavyweights Alibaba and JD.com each jumping over three percent. Seoul also scaled a fresh record high to 5,816, buoyed by strong gains in chipmakers Samsung Electronics and SK hynix.Markets in Singapore, Wellington, Taipei and Manila also ended in positive territory, while Sydney slipped. Meanwhile, trading in Tokyo and Shanghai was shut due to holidays.The gains across the region were driven primarily by technology stocks. These companies have powered much of Asia’s market strength this year as investors increasingly shift funds away from Wall Street in search of relatively cheaper valuations. Trump’s trade strategy suffered a significant legal setback on Friday when the nation’s highest court ruled that the International Emergency Economic Powers Act, which the White House relied on in April to introduce broad tariffs, “does not authorise the president to impose tariffs”. In response, the president pledged to introduce a fresh global tariff of 10% using another legal route, which by Saturday, he had increased to 15%. The latest developments have injected a new layer of uncertainty into the trade outlook. There are now also demands for authorities to return funds collected under the earlier tariff scheme, while analysts caution that the administration could still look for alternative mechanisms to enforce duties.The court’s decision has also affected the outlook for trade agreements negotiated by Washington. Even so, investors in Asia largely welcomed the ruling, which is widely viewed as supportive for China and India. Technology counters emerged as the biggest winners.In currency markets, the dollar came under pressure, falling sharply against the yen, pound and euro. Meanwhile, oil prices declined by more than one percent on optimism surrounding a potential Iran nuclear deal.
Business
Zudio, Trends: Budget fast fashion is taking small-town India by storm
More Indians in small towns are now shopping for affordable brands instead of unlabelled goods in the bazaars.
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AI contributes to spike in fashion sales complaints to Citizens Advice
The rising use of AI by fashion retailers contributed to Citizens Advice receiving almost 18,000 complaints from customers last year – a surge of 21% on a year earlier, it has reported.
The advisory service said it was helping a consumer with a fashion purchase every seven minutes, finding that the ever-increasing use of AI “makes it easier for scammers to trick people into buying items that look nothing like the images advertised”.
According to the charity’s consumer service, 82% of complaints about clothes, shoes and accessories related to online orders (14,487), while 14% were bought in-store (2,569).
Women’s clothing caused the most headaches, making up almost half (48%) of all complaints (8,508), while men’s clothing made up 20% (3,523).
The most common five issues suffered by fashion buyers last year were faulty goods, making up 18% of all complaints, delivery failures or delays (13%), trouble returning unwanted goods (12%), breach of contract (9%) and poor customer service (6%).
Of last year’s complaints, one in 13 involved scams, including shoppers thinking they were buying items from UK-based companies, due to their advertising.
Instead, consumers had received poor quality items that were not as pictured, and, when they tried to return them, were asked to pay expensive fees to send them to an address overseas.
One consumer, Hannah, a mother in her 30s from the East Midlands who did not want her surname published, told Citizens Advice she was Christmas shopping online when she saw a jacket she liked advertised at half price.
The company selling the jacket claimed it was based in London’s Covent Garden, and Hannah bought it for £35 using a debit card.
Hannah said: “The jacket took a few weeks to come and when it did, it was a totally different material and colour, and not as premium as it was pictured. The pockets were different and it had massive plastic buttons, but the one in the photograph had nice metal ones. It even smelled cheap.”
Hannah emailed the company to complain and request a refund.
She said: “The service felt very different to any other clothing company I’d dealt with. They asked for pictures of the jacket I’d received and I thought ‘this company sent the item to me, surely they should know what it looks like’. They also emailed me on Boxing Day.
“They said I could return the jacket if I sent it to China at my own expense, it left me fuming. I looked up the cost of shipping and it was about £15. The website clearly stated it was a UK business, which was deceptive.”
Hannah reported the incident to the Citizens Advice Consumer Service, and was able to get a full refund through her bank, which covered the cost. Eventually, the company did issue a refund itself.
Jane Parsons, consumer spokeswoman at Citizens Advice, said: “Shopping should be simple and stress-free, but every year we hear from thousands of frustrated people who have a tough time trying to resolve issues with retailers and sellers.
“Consumers face all kinds of problems from receiving faulty items, to waiting weeks for deliveries and poor customer service. Plus, the ever-increasing use of AI makes it easier for scammers to trick people into buying items that look nothing like the images advertised.
“It’s important consumers know what steps to take before they part with their cash or after there’s an issue. It can make all the difference in avoiding a trap or getting a refund.”
Mike Andrews, national coordinator of the National Trading Standards eCrime Team, said: “Online retail scams leave shoppers out of pocket and understandably frustrated.
“What appears to be a genuine retailer can turn out to be a fake website, a misleading advert or goods that never arrive.
“Criminals are increasingly using professional-looking sites and convincing promotions to exploit people’s confidence in well-known brands.
“We would encourage consumers to pause before buying online – check the retailer using a URL checker from a reputable website like Get Safe Online, be cautious of offers that seem too good to be true, avoid buying directly through social media adverts and always pay by card or a secure payment platform.”
UK consumer laws are difficult to enforce when sellers turn out to be based overseas.
Citizens Advice suggests the following before buying from an unfamiliar company:
– Check reviews on search engines and third party websites– Watch out for heavily discounted, ‘too good to be true’ prices and huge closing down sales– Be mindful of the targeted shopping adverts in your social media feeds – this is often how customers are drawn in– Consider whether images used to advertise an item were created by AI. This can be difficult, but look for overly airbrushed images, inconsistent textures or distortions on the face and body– Check the company’s website delivery information. Overseas stores offer shipping to the UK in a much longer timeframe than a genuine UK brand would– If you’ve been caught out by this type of scam and you paid by debit or credit card, you may be able to use a ‘chargeback scheme’ or a ‘section 75’ claim to get a refund.
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