The US Customs and Border Protection agency announced the suspension of tariffs deemed illegal by the Supreme Court, causing deep confusion in global markets. President Donald Trump has threatened retaliatory tariffs against countries that exploit the judicial blockade. The European Union is watching the developments with concern, calling on Washington for clarity as a new 15 percent tariff rate on European products comes into effect.
Judicial Blockade of Tariffs
The US Supreme Court ruled some tariffs illegal, forcing customs authorities to suspend their collection from February 24.
New Tariffs for the EU
Despite the legal chaos, a new 15% rate on products from the European Union comes into effect, impacting sectors like winemaking.
President Trump's Threats
The White House announced it would raise rates for countries that attempt to enforce a favorable court ruling.
Financial Market Reaction
Wall Street indices and the Bitcoin price fell in reaction to uncertainty about future transaction costs in trade.
The decision by US Customs and Border Protection (CBP) to suspend, effective February 24, the collection of tariffs challenged by the Supreme Court has plunged global trade into a state of high uncertainty. While the court ruling theoretically brings relief to exporters from China or Brazil, the Donald Trump administration reacted almost immediately by announcing plans to change the legal basis to maintain the previous burdens. The US President threatened that countries "playing games" by leveraging court rulings would be hit with even higher levies. This situation coincides with the formal implementation of a new, universal 15% tariff rate on goods from the European Union. The Supreme Court of the United States has long served as an arbiter in disputes over the scope of executive power. Historically, since the Trade Expansion Act of 1962, US presidents have wielded broad authority to impose tariffs on national security grounds, though this is increasingly becoming the subject of fierce legal battles. European leaders and businesses, including representatives from the Italian food sector, are warning of growing instability. The suspension of the ratification of the EU-US trade agreement and the lack of clarity regarding procedures for refunding overpaid tariffs are hitting exporters' financial liquidity. Stock markets in Europe and the US recorded declines, and the cryptocurrency market reacted with a weakening of the Bitcoin exchange rate. Italy, a key exporter of luxury and agricultural products, emphasizes the need for constructive dialogue with Washington, despite mounting pressure from domestic opposition demanding a tougher stance against White House policy. „Those countries that try to outsmart us using the Supreme Court will pay much more. We will not let our own laws be used against us.” — Donald Trump
Mentioned People
- Donald Trump — US President promising to maintain a protectionist policy
- Maroš Šefčovič — European Commission Vice-President for Interinstitutional Relations