The US Supreme Court recently ruled that many import tariffs imposed by former President Donald Trump were unconstitutional, meaning such tariffs cannot be enacted solely by the president under emergency powers. This judgment marks a significant constraint on executive power, as it underscores the necessity for Congressional approval in tariff matters. According to US economic correspondent Ann-Kathrin Nezik, this ruling represents a clear check on Trump’s authority during his second term, notoriously seen as an increasd judicial independence from the executive branch.

The ruling signifies the loss of approximately $130 billion in tariff revenue, challenging the financial foundation for Trump’s tax cuts aimed at the wealthy. The repercussions of this decision extend beyond the borders of the US; the European Union is reportedly poised to delay the ratification of its trade agreement with the United States until further details regarding the new US tariff program are clarified. Reports suggest this response from the EU is driven by a desire for transparency and stability in international trade relations, especially given the economic uncertainties this ruling introduces.

In the broader context, this decision not only affects the US economy but also influences global trade dynamics. With the EU potentially reevaluating its agreements, and trade partners looking for assurances, the ruling could have cascading effects on international relations and economic policies. As the situation develops, stakeholders within and beyond the US will be closely monitoring how this legal precedent will shape future tariff discussions and trade negotiations.