On the 20th, U.S. Treasury Secretary Scott Verzuth urged nations to honor trade agreements made over the past year with the Trump administration, asserting that despite a recent Supreme Court ruling deeming certain reciprocal tariffs illegal, existing trade commitments remain binding. In an interview with Fox News, he emphasized that the government may resort to Section 232 and Section 301 tariffs, and voiced confidence that all countries would uphold their agreements. He pointed out that while the Supreme Court limited the president's ability to enact certain tariffs, it reaffirmed the president's authority to impose embargoes, which could have even harsher consequences for non-compliant nations.

Verzuth's comments come after a 6-3 Supreme Court decision ruled that President Trump overstepped his bounds by implementing reciprocal tariffs under the International Emergency Economic Powers Act. The court held that while the president has the authority to regulate imports during emergencies, it does not necessarily extend to imposing tariffs. Verzuth explained that the U.S. would return to the same tariff levels across all nations, although the approach would be less direct and more complex going forward.

Additionally, comments regarding the potential refund of tariffs highlighted that, even with refunds, consumers who previously purchased products would not benefit. This was dismissed by Verzuth as ultimately serving corporate welfare, while the Supreme Court did not clearly address the issue of whether previously collected tariffs should be refunded. The implications of this ongoing discussion suggest a shift in economic strategies, where the U.S. may increasingly leverage more severe options against non-complying nations to enforce trade agreements.