The situation in global trade deteriorated sharply following the ruling by the U.S. Supreme Court, which questioned the president's previous authority to impose tariffs. In response, Donald Trump threatened to radically raise rates for countries "cheating the United States." Brussels' reaction was immediate: the European Parliament halted work on a key trade deal with Washington, and financial markets reacted with a sell-off of stocks and a flight of investors toward gold.

Trump threatens tariff escalation

The U.S. President announces retaliation for the court ruling, threatening drastic rates for countries allegedly cheating the United States.

Brussels freezes trade deal

The European Parliament halted work on the agreement with the USA due to legal uncertainty and aggressive rhetoric from the White House.

Crash on European trading floors

Investors are massively selling off shares, fearing a paralysis of foreign trade; the price of gold is rising as a safe haven.

The decision by the U.S. Supreme Court, undermining the legal basis of the administration's previous tariff policy, has caused unprecedented chaos in international markets. President Donald Trump, reacting to the limitation of his powers, announced the introduction of even higher tariff rates against trading partners he accuses of unfair practices. Protectionism from Washington is having a ricochet effect on global supply chains, causing particular concern in the European industrial sector, especially in steelmaking. The European Union responded to these events by freezing the ratification process of a new trade agreement with the USA. Members of the European Parliament's trade committee argue that, in the face of unpredictability from the U.S. administration and "tariff chaos," further progress on the agreement carries too much political risk. Ratification of the document, which was meant to stabilize transatlantic relations, has been thrown into doubt. Experts indicate that the current situation is a return to a full-scale trade war, which was immediately felt by stock exchanges in Europe and New York. 50% — tariffs on steel and aluminum from the EU German Chancellor Friedrich Merz announced an urgent visit to Washington to attempt to de-escalate tensions and present a common EU position on the new tariffs. Meanwhile, investors, fearing prolonged instability, are selling off shares of export-dependent companies. Gold has gained in importance, reaching local price highs. Since the establishment of the World Trade Organization in 1995, the global system has aimed to liberalize trade, but the last decade has brought a reversal from globalization in favor of bilateral disputes between major powers. Poland, although its WIG20 index shows relative resilience compared to Europe, may painfully feel the slowdown among its main trading partners, particularly in Germany. „Countries that play games with me on tariffs will get even higher tariffs.” — Donald Trump Stock index reaction to tariff chaos: DAX (Germany): -1.8, CAC 40 (France): -1.5, WIG20 (Poland): 0.2, S&P 500 (USA): -1.2

Mentioned People

  • Donald Trump — U.S. President announcing a tightening of tariff policy.
  • Friedrich Merz — German politician planning a visit to Washington to ease the dispute.