The US Supreme Court invalidated a significant portion of import tariffs introduced by Donald Trump's administration, which triggered a wave of comments in Europe and Asia. German Chancellor Friedrich Merz announced that before his visit to Washington, he will develop a unified negotiating position with European Union partners. The court's decision gives hope for relief for exporters, although the trade situation with China remains tense.

US Supreme Court Ruling

The American court overturned a significant portion of Trump's tariffs, recognizing that the administration exceeded its authority, which opens the way for claims to recover billions of dollars.

European Union Unity

Chancellor Merz announces he will go to Washington with a common strategy for the entire community, emphasizing Brussels' shared trade competencies.

Pentagon Military Pressure

The US threatens consequences if Europe, in the rearmament process, favors its own defense industry at the expense of American corporations, including through tariffs.

Relations with China

Germany records a record trade deficit with China, making Chancellor Merz's upcoming visit to Beijing crucial for the European economy.

The US court's decision to overturn tariffs marks a breakthrough in transatlantic trade relations, which had remained highly tense for months. German Chancellor Friedrich Merz welcomed this ruling, assessing it as an opportunity to significantly reduce financial burdens for German and European industry. However, the head of government in Berlin emphasized that tariff policy falls within the competence of the European Union, not individual member states. He announced close coordination of actions in Brussels before his planned visit to President Trump next week, to present Americans with a consolidated front. Despite Merz's optimism, experts warn against premature enthusiasm, as the ruling does not cover so-called sectoral tariffs, and Trump has already announced raising the general tariff rate from 10 to 15 percent. In the Swiss industry, including the luxury watch segment, importers and distributors in the US are analyzing paths to recover collected tariffs (including through protests to CBP and proceedings before US trade courts). Simultaneously, the European Union faces its own defense dilemmas, as the Pentagon warned that in case of implementing strict "Buy European" rules, it may limit European companies' access to some American defense orders through a review of exceptions to "Buy American" rules. Since 1947, when the General Agreement on Tariffs and Trade (GATT) was established, the global economy has aimed to reduce trade barriers, but the last decade has brought a return to protectionist policies.„Das ist eine interessante Entscheidung, die von vielen auch erwartet wurde, dass der Supreme Court in Washington der Regierung hier Grenzen aufzeigt, was die Zollpolitik betrifft.” (This is an interesting decision that many expected, that the Supreme Court in Washington sets limits for the government regarding tariff policy.) — Friedrich Merz The situation is complicated by China's growing dominance, which has again become Germany's largest trading partner, which, along with a simultaneous increase in trade deficit, raises concerns about excessive dependence on Beijing. Merz plans a visit to China immediately after talks in Washington, which shows Europe's difficult position as a partner maneuvering between two superpowers. 15% — Trump's planned new global tariff rate Changes in US Trade Policy 2026: Tariff legal status: Valid presidential decrees → Partial overturn by Supreme Court; Proposed general rate: 10% → 15%; Relations with EU: US bilateral pressure → EU common negotiating position

Mentioned People

  • Friedrich Merz — Chancellor of Germany, announcing negotiations with the US and China on trade policy.
  • Donald Trump — US President, author of controversial tariff policy based on protectionism.
  • Sandra Navidi — Financial markets expert and jurist, warning about the effects of trade wars.