U.S. President Donald Trump announced an increase in the planned rate of the global import tariff from 10 to 15 percent. This decision came just one day after a stinging defeat for the administration before the Supreme Court, which ruled the existing tariffs illegal. While experts warn of costs for American consumers, major corporations, including Swiss luxury brands, are preparing to fight for the return of billions of dollars in improperly collected fees.

Trump's defeat in court

The Supreme Court ruled that the president had no right to impose tariffs without Congress's consent, undermining the foundations of his policy.

Raising the rate to 15 percent

In response to the ruling, Donald Trump announced an increase in the global import tariff from the previously announced 10 to 15 percent.

Avalanche of financial claims

Companies such as Breitling plan to recover millions of dollars from the U.S. government for tariffs deemed illegal.

Uncertainty on markets

The president's new announcements complicate trade negotiations with Europe and could lead to price increases for consumers.

The U.S. Supreme Court dealt a powerful blow to Donald Trump's economic policy, ruling that tariffs imposed under special emergency legislation were illegal. The judges ruled by a vote of six to three that the president abused his authority, violating Congress's constitutional right to regulate foreign trade. This ruling opens the door to claims for refunds of overpaid tariffs, which analysts say could reach hundreds of billions of dollars. Swiss watchmaker Breitling and other European companies are already analyzing legal procedures to recover significant amounts paid into the U.S. Treasury. The U.S. Constitution of 1787 in Article I explicitly assigns Congress the exclusive right to levy taxes and tariffs. For decades, however, presidents have tried to expand their powers, using laws such as the IEEPA of 1977, which allows for ad hoc trade restrictions in the face of an "unusual and extraordinary threat" to national security. The White House's response to the verdict was immediate and confrontational. Donald Trump, using the Truth Social platform, announced not only the continuation of protectionist policy but even its tightening by raising the tariff rate to 15 percent. „We have alternatives, great alternatives. In the end we're going to take in more money.” — Donald Trump The attempt to salvage tariff policy is to be based on other trade regulations which, according to the president's advisors, give the executive greater leeway, although experts such as Kenneth Rogoff of Harvard warn that the new tariffs will also be challenged. 15% — is the new tariff rate announced by the president The current situation places U.S. trading partners, including the European Union and Switzerland, in a difficult position. While the court ruling theoretically weakens Trump's negotiating position, the announcement of higher tariff rates introduces a new phase of uncertainty on global markets. German Chancellor Friedrich Merz signaled a desire for a personal conversation with the president in Washington, while also emphasizing that the American system of separation of powers has proven its effectiveness in curbing unilateral decisions by the head of state.

Mentioned People

  • Donald Trump — U.S. President announcing a tightening of tariff policy despite the court ruling.
  • Friedrich Merz — German Chancellor planning talks in Washington on trade.
  • Georges Kern — Head of the Breitling brand announcing a fight for the return of undue tariffs.