EU Grapples with US Tariffs Fallout after Supreme Court Ruling
The European Union is grappling with the fallout of the US Supreme Court's decision to rule many of US President Donald Trump's tariffs illegal. This comes amid increasing uncertainty for businesses and calls for a united response from EU member states. The European Parliament plans to freeze the ratification process of the agreement with the USA, as reported by La Repubblica and ANSA.
Background and Context
Earlier, the US Supreme Court declared Trump’s use of emergency powers to impose a sweeping global tariff regime as unconstitutional. This decision, as reported by RT (Russia Today) and Fox News, led the US President to respond by signing an order imposing a 10% global tariff, which he later raised to 15%.
The ruling has upended the central plank of President Donald Trump's economic and foreign policy, leading to deep uncertainty within EU nations. Many businesses, especially within France and Germany, fear a return of uncertain frameworks in transatlantic commercial exchanges, as highlighted by Le Monde.
EU's Response and Key Developments
The European Commission, the EU's executive body, has insisted that a deal is a deal
and urged the US to honor existing trade agreements. Europe is asking for 'full clarity' from the United States on tariffs: 'Honor the commitments'
reported La Repubblica. The Commission also indicated that it does not intend to resort to harsh measures and is considering postponing the provision that contains the rule on 'buy European'.
In response to Trump's decision to increase global tariffs from 10% to 15%, France called for a 'united response' from the EU, while the UK is reportedly 'working with US' to analyze the impact of the Supreme Court's ruling on tariffs.
Implications and Global Reactions
The tariff hike has raised concerns among many countries that have signed or finalized trade deals with the US. Australia, for instance, is set to 'examine all options' to avoid the new 15% tariffs announced by Trump, reports The Guardian.
The Russian presidential envoy, Kirill Dmitriev, commented that Trump’s new global tariffs will most greatly benefit countries that he heavily criticized. The uncertainty following the court’s decision does little to promote fair, balanced, and mutually beneficial transatlantic relations, adds TASS.
Conclusion and Current Status
The current situation remains fraught with uncertainty. The Supreme Court's rejection of Trump's tariffs has caused chaos and disrupted the conditions for 'equal, balanced, and mutually beneficial' trades. Despite this, the EU is not planning to withdraw from the 15% tariff agreement with the US, as per the European Commission's statement reported by TASS.
As the EU seeks clarity on tariffs and insists on respect for agreements, businesses worldwide are left navigating 'murky waters' in the wake of Trump's tariff loss, summed up in the New York Times. The final impact of the Supreme Court's ruling and Trump's retaliatory tariffs on global trade is yet to be seen.