Trump Tariff Chaos: EU Braces as Supreme Court Looms

The EU is ready to respond with counter-measures to Trump’s threat to raise tariffs, and the Supreme Court is about to issue a decision on the legality of tariffs. Russian oil sanctions are the icing on the cake. 

Threats of tariffs against European allies were increased by Donald Trump as legal opposition to him grows at the Supreme Court. This convergence poses unimaginable confusion in international trade.  

CryptoRover on X says there is a 71 % probability that the Supreme Court will decide Trump has illegal tariffs. The assertion portrays a lot of speculation on what the court is about to decide on tariff authority.  

Source: Cryptorover 

Will the Supreme Court Strike Down Trump’s Trade Weapons?

In 2025, Trump already had his tariff authority struck down by lower courts. The Supreme Court has deferred its decision at least three times, and the justices seem cynical that Trump could impose tariffs unilaterally under the 1977 emergency powers law.  

The court looks at whether the emergency powers can be used by the president to engage in normal trade. The current interpretation of Trump and the use of tariffs as an emergency power would have no effective bounds, and the declaration of emergencies could only be terminated under a congressional supermajority of two-thirds.  

Treasury Secretary Scott Bessent anticipates a mishmash decision. The administration claims that they have backup plans irrespective of the decision.  

EU Nations Face Greenland-Linked Tariff Escalation

Trump threatened to impose tariffs as early as February 1 on Denmark, Sweden, France, Germany, the Netherlands, Finland, Britain, and Norway, intended to compel the U.S. to purchase Greenland. EU ambassadors said they will prepare retaliation actions. One alternative is duties on 93 billion of US imports that may automatically come into effect on February 6.  

The untested Anti-Coercion Instrument provides alternative responses, limiting the U.S. application to public tenders, investments, or trade of digital-services.  

Mette Frederiksen, the Danish Prime Minister, has announced that Europe will not be blackmailed. The president of the European Council, Antonio Costa, affirmed that there was a commitment to protect Denmark and Greenland.  

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The 500% Tariff Claim: What’s Really Happening

CryptoRover announced in a tweet that Trump signed the law that incorporates 500 percent tariffs on the EU and other nations that purchase Russian oil. The argument distorts the targets of the actual legislation.  

The Sanctioning Russia Act of 2025 suggests 500 percent tariffs on countries that buy Russian energy. The bill would force the United States to levy a 500 percent tariff on all products imported by any country that still purchases Russian oil, petroleum products or uranium.  

The main markets are China, India, Brazil, and Turkey. European countries are not bound by the suggested sanction umbrella because the EU significantly decreased Russian dependence on energy in 2022.  

Trump approved a bipartisan bill, announced by Senator Lindsey Graham, which will provide the president with leverage to compel China, India, and Brazil to cease purchasing cheap Russian crude oil.  

The bill is pending committee action. There has been no vote as yet, although there would be possible movement next week, according to Graham.  

Markets Brace for Dual Uncertainty

International markets were rocked by the threat of tariffs, and the euro and sterling were weak against the dollar. Both the timing of the Supreme Court and the intensifying trade tensions put investors in a state of uncertainty.  

In case the court declares tariffs unlawful, importers may be refunded. The Court of International Trade may order U.S. importers to obtain refunds.  

The administration affirmed that all IEEPA-based tariffs, including recent tariffs on Indian and Brazilian imports, will be refunded.  

Trade experts anticipate that Trump will exercise other tariff powers in case the courts rule against him. The Trade Act of 1962 offers backup measures to sustain duties.  

Work on the EU-U.S. trade deal was suspended in the European Parliament. The insufficient accord was criticized as lopsided prior to the appearance of new tariff threats.  

German legislator Juergen Hardt proposed a World Cup boycott as a final option. This year ,the soccer tournament is held in the U.S.  

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