The situation in trade relations between the USA and the rest of the world has sharply escalated following a ruling by the United States Supreme Court, which deemed the previous general tariffs illegal. In response, President Donald Trump announced the introduction of a new 15-percent tariff, utilizing emergency mechanisms. The European Union is threatening to suspend trade agreements, and companies worldwide are preparing lawsuits for the return of billions of dollars in unlawfully collected fees.

Supreme Court Ruling

The Court deemed general tariffs illegal, pointing to the exclusive competence of Congress in regulating foreign trade.

New 15 Percent Tariff

Trump circumvents the ruling by introducing a new tariff rate under Section 122 of the Trade Act, escalating the trade conflict.

Billion-Dollar Company Claims

Companies worldwide are preparing lawsuits for refunds of $130 to $175 billion in collected tariffs.

European Union Response

Brussels is considering suspending the ratification of trade agreements with the US and introducing retaliatory measures.

The decision by the US Supreme Court, made by a 6-to-3 majority, has caused an unprecedented shock to the global economy. The justices ruled that the administration of Donald Trump overstepped its authority by imposing general tariffs without congressional approval. This ruling opens the door to compensation claims on a global scale. It is estimated that businesses may demand refunds of $130–175 billion. The face of this battle has become Victor Owen Schwartz, a 67-year-old wine importer from New York, whose lawsuit led to the dismantling of the presidential tariff architecture. Faced with a legal defeat, the White House shows no willingness to compromise. Donald Trump announced an increase in the global tariff rate from the planned 10 to 15 percent, citing Section 122 of the Trade Act of 1974. For decades, the US Supreme Court has guarded the separation of powers, repeatedly curbing the executive branch's attempts to usurp the legislative prerogatives of Congress in fiscal and trade matters, which has its roots in the interpretation of Article I of the United States Constitution. The international community's response is firm. The European Union is considering freezing the ratification process of the July agreement with Washington. Bernd Lange, chairman of the European Parliament's International Trade Committee, announced a proposal to halt legislative work until clear legal guarantees are obtained from the US. Italian Foreign Minister Antonio Tajani convened a special task force Sistema Italia to protect domestic exporters from the effects of market volatility. Meanwhile, the European Central Bank, through Christine Lagarde, warns that rising trade uncertainty could have a destructive impact on investment in Europe. The situation is dynamic, and financial markets are anxiously awaiting President Trump's planned State of the Union address on Tuesday. 130 mld USD — total amount of company claims for tariff refunds In Switzerland, a debate is ongoing over maintaining mutual tariff concessions. Although November's rate reductions on American seafood were part of a bilateral quid pro quo agreement, some politicians are demanding their revision in light of Washington's new policy. Polish entrepreneurs, especially from the furniture and food sectors, are also analyzing legal possibilities to recover paid duties. However, lawyers warn that proceedings in US courts will be lengthy and costly, favoring large corporations at the expense of small and medium-sized enterprises.

Mentioned People

  • Donald Trump — President of the United States, who is imposing new tariffs on foreign goods despite the court ruling.
  • Christine Lagarde — President of the European Central Bank, warning about the consequences of trade uncertainty.
  • Antonio Tajani — Italian Minister of Foreign Affairs, spearheading protective actions for Italian exports.
  • Victor Owen Schwartz — New York wine importer who initiated the successful legal battle against the tariffs.