The US Supreme Court ruled by a six to three vote that President Trump exceeded his authority by imposing broad import tariffs. According to the Court, the emergency law used did not provide a legal basis for this.
The ruling affects the core of Trump's trade policy. The so-called reciprocal or global tariffs, which applied to almost all incoming goods, can no longer be maintained on the chosen legal basis.
Trade Committee
In the European Parliament, the verdict led to immediate action. The Trade Committee will hold an emergency meeting on Monday to assess the consequences. A planned vote on the implementation of the trade deal with Washington is therefore in jeopardy.
Promotion
The uncertainty revolves around the agreement reached last summer. It provides for a general tariff of fifteen percent on European exports to the United States, while the EU removes its import duties on American industrial goods.
Now that the legal basis for Trump's broad tariffs has been removed, questions arise about the validity and implementation of those agreements. Import duties already paid also come under renewed scrutiny.
Clarification
The European Commission states it maintains close contact with the US government. Brussels is requesting clarity on the next steps and emphasizes that companies need stability and predictability.
Trump reacted fiercely to the verdict and shortly thereafter announced a new global tariff of ten percent. With this, he tries to continue his trade policy despite the setback at the Supreme Court. Trump will give an important speech on Tuesday about the alleged success of his economic policy.
European leaders reacted cautiously positive to the ruling but also pointed to ongoing uncertainty. For exporters on both sides of the Atlantic Ocean, it remains unclear which rules will ultimately apply.