The American administration has been forced to suspend the collection of certain tariff duties that the U.S. Supreme Court has ruled illegal. This decision has caused a political earthquake in Washington. Democrats in the Senate are sharply criticizing the president's tariff policy, pointing to its negative impact on consumer prices, although official demands for multi-billion dollar refunds remain a subject of political disputes, not formal legislative initiatives. President Donald Trump, despite a severe legal defeat, is promising retaliatory actions and the introduction of even more painful trade restrictions against countries "playing games with the USA."
Tariff Collection Halted
The White House announced the immediate suspension of tariffs deemed illegal by the Supreme Court, which will affect thousands of goods imported into the USA.
Demand for $175 Billion Refund
Senate Democrats are demanding that importers be refunded funds collected unconstitutionally, threatening a crisis in the federal budget.
Trump Threatens Escalation
The president announced the introduction of new, even more painful trade barriers against countries that would exploit the current legal situation.
Inflation Uncertainty
Fed representatives indicate it is too early to assess the ruling's impact on prices, although the market expects temporary relief for importers.
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 American trade administration. The Supreme Court ruled that the president exceeded his authority by imposing tariffs without appropriate congressional approval. As a result, the administration was forced to revise the legal basis for its actions, but President Trump immediately announced the imposition of new tariffs of 10-15% based on other trade regulations, which in fact continues the tariff policy despite the ruling. 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 country'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 searching for alternative legal pathways to maintain the restrictions, the president is threatening new types of barriers, which he describes as "more powerful and bothersome" for trade partners. Uncertainty has gripped financial markets, and public sentiment towards the president has worsened just before the planned State of the Union address. The U.S. trade deficit, despite years of aggressive tariff policy, has not significantly decreased, which is becoming the main argument of critics of the current strategy. This situation resembles legal disputes from the period of the Great Depression in 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, the situation is being closely monitored by China and the European Union. Any changes in the American tariff system directly impact the supply chains of giants like Shein or European industrial conglomerates. German Chancellor, Friedrich Merz, is maintaining plans to visit Washington to negotiate on behalf of the Community. 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 → Halted (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
Mentioned People
- Donald Trump — U.S. President attacking the Supreme Court ruling and announcing new tariffs.
- Friedrich Merz — German Chancellor planning a visit to Washington regarding trade disputes.
- Christopher Waller — Member of the Board of Governors of the Federal Reserve (Fed), assessing the ruling's impact on inflation.