The United States Supreme Court has dealt a severe blow to Donald Trump's trade policy, ruling that most of the tariffs he imposed are unconstitutional. The justices ruled that the president abused powers that belong exclusively to Congress. In response, Trump announced a drastic increase in tariff rates from 10 to 15 percent on a global flat-rate basis, causing chaos in the markets and prompting announcements of billion-dollar compensation claims.

Judicial Paralyzation of Trump's Tariffs

The Supreme Court, by a vote of 6:3, ruled most import tariffs illegal, restoring decision-making authority on this matter to the US Congress.

Retaliatory Rate Increase

President Donald Trump announced an increase in the planned global tariff from 10 to 15 percent, disregarding the court ruling and escalating the conflict.

Avalanche of Financial Claims

International conglomerates, including Breitling, are preparing applications for the return of billions of dollars collected by the US under illegal tariffs.

Merz's Diplomatic Mission

German Chancellor Friedrich Merz will travel to Washington to negotiate on behalf of Europe and counteract new economic burdens.

The US Supreme Court decision of February 20, 2026, constitutes an unprecedented limitation of executive power in the area of tariff policy. The justices, by a vote of six to three, ruled that the president's executive orders violated Congress's exclusive authority to regulate foreign trade. The ruling immediately mobilized global corporations, including Swiss giants such as watchmaker Breitling and the company Lindt & Sprüngli, to analyze possibilities for recovering the duties paid. Although the path to physically recovering the funds remains legally complicated, the scale of potential claims is estimated at hundreds of billions of dollars. The American legal system is based on the principle of "checks and balances," meaning mutual control and balance of powers. The dispute over tariff authority between the president and parliament has its roots in the Tariff Act of 1930, known as the Smoot-Hawley Act, which contributed to deepening the Great Depression. The White House's reaction was immediate and confrontational. Donald Trump, using the Truth Social platform, announced an increase in planned global import tariff rates from the original 10 to 15 percent. After challenging part of the tariffs in court, the administration is seeking alternative legal bases for new tariffs, while simultaneously maintaining instruments based on other delegations, including provisions invoking national security. German Chancellor Friedrich Merz announced an urgent visit to Washington, emphasizing the need to develop a common European position on the destabilization of global trade. This situation also casts doubt on trade negotiations with Switzerland, even though the Bundesrat declares its willingness to continue talks. 15% — is the new global tariff rate Experts warn that despite the importers' court victory, economic uncertainty has reached its peak. Procedures for applying for tariff refunds could take years, and the White House's new tariff offensive threatens to disrupt supply chains. The Supreme Court has indeed set boundaries for presidential power, but Trump's determination to implement slogans about "Fortress America" suggests the trade war is entering a new, even more unpredictable phase.

Mentioned People

  • Donald Trump — US President announcing an escalation of the tariff war.
  • Friedrich Merz — German Chancellor planning negotiations in Washington.
  • Georges Kern — CEO of Breitling demanding a tariff refund.