Donald Trump loses his main weapon. “Europe strengthens position.” These decisions are a breakthrough
The American court for international trade abolished duties imposed by the President of the United States into dozens of countries, knocking the main tool of foreign policy from his hand.
One of the officials with whom Politico talked to, said that the decisions revoking the duties reduced the pressure on Trump's “resignation”.
The Trump administration has been confidence in international arena for months – both introducing customs and withdrawing from them at their own discretion – and watched how other countries react to these steps.
For the first time, the court decisions set Trump on the defensive, while his administration is struggling with a response to a serious defeat of his broadly ending commercial program, and some countries perceive these rulings as an opportunity in difficult negotiations with the USA.
– The decision reduced the pressure on the countries so that they would succumb to US demands – said the Filipino official, who, provided that anonymity, agreed to honestly comment on negotiations, commenting on the Wednesday ruling of the American court for international trade, which stated that he stated that The president exceeded his rights, imposing duties of 10 percent. And more for dozens of trading partners.
This decision, however, was temporarily suspended by the Court of Appeal on Thursday afternoon, which allowed the Customs to enter into force until further court proceedings were resolved. According to the schedule set by judges, the administrative suspension is to apply until mid -June.
“The judge basically tried to destroy those contracts, many of which are to be signed soon,” said Kevin Hassett, head of the US National Economic Council, in an interview with Fox News after the Court of Appeal issued a suspension decision.
– And the fact that the Court of Appeal gave us a lot more time means that we will have time to finalize these contracts. This is really good news for American employees and farmers – he added.
On Thursday, May 29, another federal court issued an order to suspend these duties, but it applies only to two companies that filed a lawsuit.
The court's decision for international trade “strengthens the position of Europe,” said the European Union official, who wanted to remain anonymous to be able to talk honestly about the state of talks, adding that President Trump is now under additional pressure to conduct “constructive negotiations”.
“Administration will win”
However, Europe and many other main trading partners of the United States before suspension of the decision stated that it is not planning to completely give up talks, taking into account the number of existing ones – and potential future – customs duties on key branches of industry.
– Some of the results we strive for, such as lowering and even the total abolition of duties on some categories of industrial products, are worth continuing to continue talks, regardless of the effects of this decision – said Olof Gill, EU spokesman for trade and economic security.
– We have been involved in solving this problem for many years. In our opinion, it is continuing to talk in the current format, it still makes sense – he said.
In addition to the extensive target, which are the subject of court rulings, 25 % duties on cars, steel and aluminum are still in force, and more tariffs for specific sectors, such as semiconductors, pharmaceuticals and other branches of industry, are planned.
Speaking on Thursday, May 29 in the Canadian House of Commons, Canada Mark Carney Prime Minister said that although his government was satisfied with court rulings rejecting the arguments of Trump's administration that there is a state of emergency justifying some customs, “Our trade relations with the United States are still deeply threatened And negatively affected by similarly unjustified … duties on steel, aluminum and automotive sector, as well as continuous threats of imposing duties on other strategic sectors, including wood, semiconductors and pharmaceuticals. “
“Therefore, the priority of the new Canada government remains to establish new economic relations and security with the United States and strengthen our cooperation,” Carney continued.
The countries face a very real possibility that the White House will simply decide to impose new duties on the basis of other regulations, if the old ones are permanently blocked by the court.
On Thursday, May 29, the White House suggested the extension of customs duties to individual industries, which are allowed under another Act on National Security, even if there is still a fight in court for customs imposed on countries on the basis of the Act on the Extremely State of 1977.
“We are doing both,” a spokeswoman for the White House Karoline Leavitt told journalists on Thursday, in response to the question of whether the administration is already considering introducing new duties under other provisions, in addition to continuing the appeal proceedings.
Leavitt added that the US commercial representative Jamieson Greer has already received information from “countries from around the world” that they intend to continue negotiations. “They probably also see the absurdity of this judgment and understand that the administration will win,” she said.
Trump under pressure
The director of the American National Economic Council Kevin Hassett also referred to administration plans regarding the imposition of new duties during the appearance at Fox Business on Thursday morning. He said that although the administration would prefer to exercise the statutory rights that were questioned in court, “there are three or four other ways to do this.”
White House Trade Advisor Peter Navarro said that the administration could theoretically impose duties covered by the Extraordinary Act and emphasized that the decision would not bind the President's hands.
“Interestingly, the court basically stated that we were right, only that other rules and regulations should be applied. In this sense, nothing has changed,” said Navarro on Thursday, May 29 in an interview with Bloomberg.
Trump advisor to economics Peter Navarro, 29 May 2025.
However, in court documents, the administration adopted a different tone, arguing that Wednesday's commercial court ruling threatens both national security and fragile agreement with China.
“This threatens” breaking negotiations with dozens of countries “and creates a direct risk that our trading partners” will feel emboldened again to use weaknesses and take retaliation against the United States “” – the administration wrote in the application for suspension of the execution of the judgment.
A spokeswoman for the Chinese Ministry of Foreign Affairs Mao Ning refused to answer the question about the impact of the decision on the upcoming trade negotiations between the two countries during the Thursday press conference.
“China clearly presented their position: customs and commercial wars have no winners. Protectionism does not benefit anyone and ultimately is unpopular,” she said.
The tensions between the two countries are still increasing after the agreement on the reduction of duties in May and the start of wider commercial negotiations next month. The actions of the US Department of Trade aimed at inhibiting the development of some Chinese industries irritate officials in China, and the court's decision strengthened their belief that Trump would not be able to maintain their customs operations.
– It's a bad combination. This does not bode well for negotiations and we can face the new round of retaliation, which will increase the uncertainty felt by the business environment – said one of the officials who wanted to maintain anonymity to discuss private conversations.
Next week, the EU Commissioner for Trade Maros Sefcović may meet with the US commercial representative Jamieson Greer in Paris, while high -ranking EU officials for trade go to Washington to discuss the details of trade negotiations with their American counterparts.
