RIGA, Feb. 23 (Xinhua) -- The recent ruling by the U.S. Supreme Court overturning parts of President Donald Trump's trade tariffs and Trump's announcement of new provisional tariffs have created fresh uncertainty for businesses, Latvian bank economists have warned.
On Friday, the U.S. Supreme Court ruled that Trump had exceeded his authority in imposing tariffs under the International Emergency Economic Powers Act (IEEPA). Shortly after the decision, Trump announced a 10 percent tariff on all imports for 150 days under the Trade Act of 1974. On Saturday, he said the new tariff rate would be 15 percent.
Karlis Purgailis, chief economist at Citadele Bank, was quoted by the Latvian news agency LETA as saying on Monday that the U.S. tariff system is now marked by complete uncertainty.
The new tariffs will remain in force for up to 150 days unless Congress extends them, he noted, adding that businesses seeking refunds of previously paid tariffs will likely face a complex legal process. Companies must submit formal claims to U.S. Customs and demonstrate that the tariffs were collected under the unlawful measures, he added.
Dainis Gaspuitis, chief economist at SEB Bank, said the court's decision represents a setback for the Trump administration's trade agenda, although it was not entirely unexpected, according to LETA.
He said it remains unclear how the ruling will affect trade agreements already concluded. An agreement with the European Union, for example, may have been influenced by broader security considerations, and recent tensions over Greenland could weaken Washington's leverage in that area, he said.
Peteris Strautins, chief economist at Luminor Bank, also told LETA that since Trump took office, the uncertainty generated by U.S. economic policy has increased in many areas, with foreign trade drawing the most attention. ■