European Union signals readiness to retaliate after US tariff ruling


Summary

EU says it has tools to respond to US tariffs

France’s trade minister said the European Union is prepared to act if Washington moves ahead with a 10% blanket tariff, citing measures including the bloc’s anti-coercion instrument and suspended retaliatory duties.

Supreme Court strikes down Trump’s earlier global tariffs

In a 6-3 ruling, the court said the president exceeded his authority under a 1977 law, undermining a key element of his trade policy.

Potential refunds and renewed tensions loom

Analysts estimate the government could owe up to $175 billion in tariff refunds, while President Donald Trump vowed to reimpose a new 10% levy on imports.


Full story

The European Union signaled that it is prepared to retaliate against the United States if Washington moves ahead with a new round of tariffs, France’s trade minister, Nicolas Forissier, said on Saturday.

Forissier told the Financial Times that France is coordinating with European Union member states and the European Commission following President Donald Trump’s announcement of a blanket 10% tariff on imports. The declaration came after the U.S. Supreme Court invalidated many of the duties previously imposed on trading partners, ruling that Trump had acted beyond his legal authority.

“Should it become necessary, the EU has the appropriate instruments at its disposal,” Forissier said.

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According to the Financial Times, French officials said one option under consideration is the EU’s anti-coercion instrument, a mechanism designed to counter economic pressure from third countries. The “trade bazooka” allows the EU to deploy steps such as restricting exports, imposing levies on services or barring foreign firms from public procurement contracts. U.S. technology companies could be among those affected.

The renewed trade tensions follow a 6-3 Supreme Court decision that struck down Trump’s sweeping tariff policy. The justices said the president overstepped the authority granted under the 1977 International Emergency Economic Powers Act, the statute his administration had cited to justify the measures.

Writing for the majority, Chief Justice John Roberts said the law does not clearly authorize the president to impose tariffs of such breadth and duration, and that sweeping economic powers require explicit approval from Congress.

Trump sharply criticized the ruling, accusing the justices who opposed the tariffs of acting against U.S. interests. He said he would promptly reinstate a 10% tariff on all imports in addition to existing duties.

An analysis by the University of Pennsylvania estimated that importers could seek refunds totaling as much as $175 billion if the government is required to return duties already collected.

In a dissenting opinion, Justice Brett Kavanaugh warned that sorting out potential repayments could prove complicated, noting that the court did not outline how the government should handle reimbursement of billions of dollars in tariff revenue. He was joined in dissent by Justices Samuel Alito and Clarence Thomas, while Justices Amy Coney Barrett, Neil Gorsuch, Ketanji Brown Jackson, Elena Kagan and Sonia Sotomayor sided with Roberts in the majority.

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Why this story matters

The Supreme Court struck down Trump's tariff policy, but the president announced he will impose a new 10% tariff on all imports, prompting the EU to prepare retaliatory measures that could restrict U.S. companies' access to European markets and contracts.

Higher costs on imported goods

The reinstated 10% tariff on all imports will increase prices Americans pay for foreign-made products, from electronics to clothing to food.

US companies face European restrictions

EU retaliation could block American technology firms and other businesses from European public contracts and impose new levies on their services.

Importers may receive tariff refunds

Companies that paid duties under the invalidated policy could seek refunds totaling up to $175 billion, though the repayment process remains unclear.

SAN provides
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Certified balanced reporting

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