Trump Administration Halts Tariff Collection Following Supreme Court Ruling; Democrats Demand Billions in Refunds

The U.S. Supreme Court's decision to undermine the legal basis of Donald Trump's tariff policy has led to an unprecedented paralysis in the U.S. trade administration. The Supreme Court ruled that the president exceeded his authority by imposing tariffs without proper congressional approval. As a result, the administration was forced to revise the legal basis for its actions; however, President Trump immediately announced the imposition of new, 10-percent universal tariffs under the Trade Act of 1974, effectively continuing the policy of trade restrictions. However, the case has a profound financial dimension; Democratic Party senators have formally demanded that the government refund companies an estimated $175 billion. This amount represents a significant burden on the federal budget and raises questions about the nation's fiscal stability. President Trump reacted to the ruling with a series of attacks on the judges, accusing them of acting against American workers and national interests. While the White House is frantically seeking alternative legal pathways to maintain the restrictions, the president is threatening a new type of barrier, which he describes as 'more powerful and annoying' for trade partners. Uncertainty has gripped financial markets, and public sentiment toward the president has deteriorated just before the planned State of the Union address. The U.S. trade deficit, despite years of aggressive tariff policy, has not significantly decreased, becoming a key argument for critics of the current strategy. This situation resembles legal disputes from the Great Depression era of the 1930s, when Franklin D. Roosevelt's economic programs were blocked by judges, ultimately leading to a redefinition of the government's role in the economy. On the international stage, China and the European Union are closely monitoring the situation. Any changes to the U.S. tariff system directly impact the supply chains of giants like Shein and European industrial concerns. German Chancellor Friedrich Merz called for the European Union to develop a common position on U.S. tariff policy and declared readiness to engage in talks with Washington to avoid a trade war. The risk of Trump introducing 'draconian' alternatives, such as import licenses or tariffs based on other constitutional grounds, means global trade is in a state of high tension. „Countries that play games with me on deals will get even higher tariffs.” — Donald Trump 175 mld USD — amount of tariffs Democrats are demanding be refunded Consequences of the Supreme Court Ruling: Tariff Collection: Continued without restrictions → Suspended (for tariffs deemed illegal); Presidential Authority: Broad, based on national security → Limited by Congressional oversight; Financial Claims: No mass refund demands → Demand for $175 billion refund