Feb 22 • 06:33 UTC 🇬🇷 Greece Naftemporiki

What the tariff defeat of Trump means for Europe

Trump's tariff policy faced rejection by the US Supreme Court, prompting uncertainty in Europe.

The recent decision by the US Supreme Court to reject President Trump's tariff policy has stirred turmoil and uncertainty not only in the United States but also across Europe. In retaliation, President Trump has decided to escalate his stance by increasing tariffs globally from 10% to 15%. This adjustment is based on a different trade law from 1974, which allows for duty enforcement for a duration of 150 days, reflecting the ongoing tension in international trade relations.

The European Commission has responded cautiously to the ruling and announced that it will closely analyze the implications of the decision. A spokesperson in Brussels emphasized a commitment to low tariffs and ongoing efforts to reduce them, underscoring the interdependence of companies on both sides of the Atlantic regarding stable and predictable trade relations. The commission highlighted the significance of collaboration and stability in fostering economic growth and trade.

The core question for the EU is whether it has the political leverage to demand more from future negotiations. The uncertainty around the renegotiation of existing agreements and possible future tariffs poses challenges for European markets and businesses, indicating that the aftermath of the Supreme Court's decision could have lasting impacts on international trade dynamics, particularly in transatlantic relations.

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