Following the US Supreme Court’s decision against President Donald Trump’s tariff policies, the EU and other countries are trying to assess the exact consequences for the global economy. A special meeting of the legal service and the negotiating team responsible for a customs agreement between the USA and the EU is planned in the EU Parliament on Monday. In addition, Chancellor Friedrich Merz (CDU) wants to talk to Trump about his customs policy during his visit to Washington in a few days.
In a historic ruling, the Supreme Court on Friday barred the US president from imposing tariffs on imports of goods from many countries, citing a 1970s emergency law. Aggressive tariff policy is a core element of Trump’s second term. He announced that he would use other means to continue enforcing his tariffs.
Trump didn’t let much time pass before he made a new move: First, he announced a global tariff rate on imports to the USA of 10 percent on Friday – only to raise it to 15 percent the following day. In doing so, the 79-year-old is fully exploiting the maximum limit of a trade law from the 1970s, which he is citing.
US Treasury Secretary Scott Bessent told Fox News that tariff revenues would remain unchanged this year and in the future.
What happens to trade agreements like the one with the EU?
After the tariff setback, it is unclear which trade agreements will remain in place and which will not. It is still unclear which category the European Union falls into. The EU and the USA actually agreed on a customs agreement in the summer. The basis for this deal may now be lost.
The EU Commission requires the USA not to exceed an agreed tariff limit of 15 percent in any case. EU products must benefit from treatment that is as competitive as possible, the Brussels authority said. The Commission’s communication said: “A deal is a deal.” They are demanding clarity on the United States’ next steps following the Supreme Court’s recent ruling.
Wave of reclaims expected
Since the Supreme Court’s decision, there has been great uncertainty about the impact. The ruling could trigger a wave of clawbacks for tariffs already paid. According to calculations by the University of Pennsylvania, the US state budget is around $175 billion.
Economic experts fear chaos if there are tens of thousands of claims from importers. The chairman of the trade committee in the EU Parliament, Bernd Lange, also sees opportunities for repayment of illegally imposed US tariffs. “Taxes that have been paid too much must be paid back,” he told Deutschlandfunk.
Merz wants to talk to Trump about customs policy
Chancellor Merz also reacted: He wants to talk to Trump about customs policy in Washington in a few days. “We will also have a very clear European stance on this,” the CDU politician told ARD after Trump’s announcement of a global 10 percent tariff on imports to the USA – before Trump increased the value. Before that, there will be coordination in the European Union.
What kind of tariffs will Trump impose based on other bases?
Citing an emergency law from 1977, the US President had, since the beginning of his second term in office, imposed tariffs on dozens of trading partners bypassing Congress. The Supreme Court did not rule on tariffs in general. But about whether Trump’s argument with the emergency law was legal or not. Now it is clear: he has exceeded his authority.
Trump’s new tariff of 10 and then 15 percent is now based on a trade law from 1974. This allows, under certain conditions, tariffs to be levied on imports for up to 150 days. Experts already doubt that these have been met. In order to impose tariffs for a longer period of time, Trump would definitely need the approval of the US Parliament.
Which tariffs will definitely remain in place?
The US Supreme Court has not ruled on tariffs on specific products for which the US government used a different legal framework. Citing a section of the 1962 Trade Expansion Act, Trump imposed tariffs on steel, aluminum and automobiles. These tariffs continue to apply.
