The United States Supreme Court has declared President Donald Trump’s ‘Universal Baseline Tariff’ unconstitutional, ruling that it violated the US Constitution. The verdict, led by Chief Justice John Roberts, invalidates tariffs imposed under the International Emergency Economic Powers Act, which the court said were used as economic coercion rather than for national security. The decision has global implications, particularly for countries like Bangladesh that recently signed trade agreements under Trump’s tariff regime.

Following the ruling, Trump swiftly announced a new 10 percent tariff under Section 122 of the 1974 Trade Act, replacing Bangladesh’s previous 19 percent rate. While this appears to ease pressure, economists warn that the new law allows tariffs to rise up to 50 percent after a 150-day review of labor and environmental conditions. Bangladeshi economists and business leaders have criticized the earlier trade deal as unequal and coercive, noting that the US gained more benefits.

Experts suggest Bangladesh should avoid immediate renegotiation and instead focus on improving domestic compliance and preparedness as the US reviews trade practices under the new tariff framework.