Chaos in Global Trade Following US Supreme Court Ruling and New Trump Decree

The US Supreme Court's decision to invalidate a significant portion of tariffs introduced by the Donald Trump administration in 2025 has caused unprecedented turbulence in international relations. The highest court judges, by a vote of six to three, ruled that the IEEPA act does not authorize the president to impose tariffs, and therefore introducing tariffs without Congressional consent exceeded the executive branch's authority. In response, Trump signed a new decree raising the tariff rate from 10 to 15 percent, basing it on other legal grounds, which immediately drew criticism from world leaders. The President of Brazil, Luiz Inácio Lula da Silva, visiting India, stated that the world does not need additional tensions and called on Washington to stop interfering in other countries' economies. Meanwhile, France and Germany are calling for a "unified response" from the European Union. The situation is complicated by agency reports suggesting the US budget may face the necessity of paying gigantic compensations to importers who paid tariffs deemed unlawful. Initial estimates mention an amount reaching $175 billion. The principle of separation of powers and the system of "checks and balances" in the USA dates back to 1787, when the framers of the constitution deliberately divided powers between the president, parliament, and courts to prevent authoritarianism.„The Supreme Court decision on tariffs is deeply disappointing and I am ashamed. It is an absolute shame.” — Donald Trump Public polls in the USA indicate growing social discontent – in one survey published during this period, the disapproval rate for the president was about 60 percent. Nevertheless, the Trump administration does not intend to abandon protectionism, arguing it is necessary to level the playing field in trade with China and Europe. However, economists warn of the long-term effects of uncertainty, which is hitting supply chains and investment planning worldwide.