Chaos in Global Trade After Supreme Court Ruling: Trump Raises Tariffs to 15 Percent

The U.S. Supreme Court decision, made by a 6 to 3 majority, caused an unprecedented shock in the global economy. The justices ruled that the Donald Trump administration exceeded 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 companies may apply for refunds ranging from 130 to 175 billion dollars, although experts warn that these processes could take years, and recovering the full amounts is not guaranteed by the ruling. The face of this battle became Victor Owen Schwartz, a 67-year-old wine importer from New York, whose lawsuit led to the overturning of the presidential tariff architecture. In the face of legal defeat, the White House, however, 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 U.S. 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 USA. Italian Foreign Minister Antonio Tajani convened a special Sistema Italia task force to protect domestic exporters from the effects of market volatility. Meanwhile, the European Central Bank, through Christine Lagarde, warns that growing 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, particularly from the furniture and food sectors, are also analyzing legal possibilities for recovering paid duties. Lawyers warn, however, that proceedings in American courts will be lengthy and costly, which favors large corporations at the expense of small and medium-sized enterprises.