Trump is Trump now it faces retaliation from EU;EU Vows Retaliation Against US After Trump’s Swift Tariff Escalation Following Supreme Court Setback
On Saturday, the European Union signaled its readiness to retaliate against the United States in response to President Donald Trump’s quick moves to reinstate and heighten global tariffs.
This development has sparked fears of a fresh trade conflict across the Atlantic, coming just a day after a significant Supreme Court ruling undermined Trump’s trade strategy.
French Trade Minister Nicolas Forissier informed the Financial Times that France is working closely with other EU nations and the European Commission regarding Trump’s tariff actions.
“If required, the EU possesses the necessary tools to respond,” Forissier stated.
According to French sources cited by the publication, Brussels is considering activating the anti-coercion mechanism—a potent “trade bazooka” that might bar US tech firms from EU government contracts, enforce export restrictions, or apply fees on services.
Additionally, a previously paused set of countermeasures targeting over €90 billion in American products could be revived.
From Judicial Loss to 15% Tariff Hike
The EU’s stance comes amid a chaotic day in American trade decisions. On Friday, the Supreme Court voted 6-3 against Trump, declaring that he overstepped his powers by enacting broad tariffs via the International Emergency Economic Powers Act (IEEPA) of 1977.
In the majority opinion, Chief Justice John Roberts—supported by two conservative colleagues and the three liberal justices—noted that the president “cites no law” where Congress allowed IEEPA for tariff imposition.
Trump reacted promptly by issuing an executive order for a 10% worldwide tariff under Section 122 of the 1974 Trade Act, an obscure clause allowing up to 15% tariffs for a maximum of 150 days without legislative consent.
By Saturday morning, he amplified it to the full 15% via a Truth Social post, declaring it “effective immediately.” The administration had originally planned for the tariffs to begin on February 24.
Industries Prepare for Ongoing Volatility
The European Commission stated on Friday that it is requesting clarification from the US on the ruling’s effects, which also casts doubt on the EU-US trade agreement from last summer. T
hat pact imposed a 15% duty on EU shipments while eliminating tariffs on American industrial items.
European sectors are already under pressure.
Data from Eurostat, as analyzed by Eurofer, shows a 30% drop in EU steel shipments to the US during the latter half of 2025 compared to the prior year, largely due to Washington’s 50% steel tariffs.
“These harsh 50% US tariffs on EU steel are harming our sector,” remarked Eurofer Director General Axel Eggert.
The VCI, Germany’s chemicals and pharmaceuticals association representing companies like BASF and Bayer, cautioned that the court decision provides no relief.
“This doesn’t signal stability for our companies; instead, it’s another wave of unpredictability,” said managing director Wolfgang Grosse Entrup.
“Thinking the tariff dispute is resolved would be a grave error.”
