Business
Trump warns US could be left ‘defenceless’ if Supreme Court overturns global tariffs
US President Donald Trump has cautioned that the United States could be left “defenceless” and “reduced to almost Third World status” if the Supreme Court overturns his sweeping global tariffs. The warning came as justices appeared sceptical during oral arguments on Wednesday about his claims of near-unlimited authority to impose tariffs.
Despite the court’s doubts, trade experts say Trump would still have multiple legal tools to continue taxing imports even if his emergency powers are curtailed. “It’s hard to see any pathway here where tariffs end,” said Kathleen Claussen, a trade law professor at Georgetown University. “He could rebuild the tariff landscape using other authorities.”
Tariffs have become a key element of Trump’s foreign and economic policy in his second term. Since returning to the White House, he has imposed double-digit “reciprocal” tariffs on most countries, declaring America’s trade deficits a national emergency. The average US tariff now stands at 17.9%, up from 2.5% in January, according to Yale University’s Budget Lab — the highest level since 1934.
At the hearing, Neal Katyal, representing small businesses challenging the tariffs, argued that Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) went far beyond what Congress intended. He noted that Congress had already delegated tariff powers through other, more limited laws. “Congress knows exactly how to delegate its tariff powers,” Katyal said.
Even if the Supreme Court restricts his use of emergency powers, Trump could turn to several other laws to keep tariffs in place. Section 301 of the Trade Act of 1974 allows the United States to impose duties on countries engaged in “unjustifiable” or “unreasonable” trade practices. Trump has used it extensively against China, including tariffs on a wide range of goods during his first term. These measures can last four years and be renewed indefinitely.
Another option is Section 122 of the same act, which lets the president impose tariffs of up to 15% for 150 days in response to trade imbalances. Though never used before, this provision requires no investigation before implementation.
Trump has also relied heavily on Section 232 of the Trade Expansion Act of 1962, which allows tariffs on imports deemed a threat to national security. Using this authority, he has imposed duties on steel, aluminium, and even furniture, a move that critics argue stretches the definition of “security.” Courts are generally reluctant to question presidential determinations in this area, giving the White House considerable latitude.
Some advisers have floated an even older tool: Section 338 of the Tariff Act of 1930, part of the infamous Smoot-Hawley legislation that deepened the Great Depression. The clause permits tariffs of up to 50% against countries that discriminate against US businesses. Though it has never been used, Treasury Secretary Scott Bessent recently described it as a potential “Plan B” should the Supreme Court strike down Trump’s emergency tariffs.
“To be the first president ever to use it could have some cachet,” said John Veroneau, a former US trade official. For now, Trump’s message to the court — and to trading partners — is clear: even if one door closes, he intends to keep the tariff war alive.
Business
Oil Tanker Attacked in Strait of Hormuz, Crew Evacuated
An oil tanker was attacked off the coast of Musandam in the Strait of Hormuz on Sunday, leaving four people injured and prompting the evacuation of all 20 crew members, according to Oman’s Maritime Security Centre.
The vessel, named Skylight and flying the flag of the Republic of Palau, was targeted around five nautical miles (9.26 km) north of Khasab Port, Oman authorities said. The incident marked the first reported attack on a ship in the strategic Strait of Hormuz on Sunday morning.
Oman’s Maritime Security Centre confirmed that the tanker’s crew included 15 Indian nationals and five Iranian nationals, all of whom were safely evacuated. The four injured crew members were transferred for medical treatment. Authorities did not immediately provide details on the cause of the attack or the identities of the attackers.
The incident has heightened concerns about shipping safety in one of the world’s most important oil transit routes. The Strait of Hormuz handles a significant portion of global crude oil exports, and any disruption to its operations can have major implications for energy markets.
In response to the attack, major shipping companies have suspended operations through the Strait of Hormuz. Danish shipping and logistics giant Maersk announced on Sunday afternoon that it had halted all future transits through the waterway until further notice. Other operators are reportedly reviewing their shipping schedules and implementing additional safety measures.
The attack comes amid ongoing regional tensions, with the Strait of Hormuz often at the center of geopolitical disputes. Analysts say the incident could lead to further disruptions in global oil supplies and push energy prices higher if shipping companies continue to avoid the area.
Maritime security experts emphasize the need for close monitoring of shipping traffic and coordinated responses to ensure the safety of vessels and crews in the region. The rapid evacuation of Skylight’s crew has been described as a positive example of emergency preparedness, but the attack underscores the continuing risks faced by commercial shipping in the Gulf.
Authorities are continuing to investigate the circumstances of the attack and are coordinating with international maritime agencies to prevent further incidents. The situation remains fluid, and the potential impact on shipping and regional security is likely to unfold in the coming days.
Business
EU Household Energy Prices Remain Above Pre-War Levels Despite Stabilisation
Residential electricity and natural gas prices across the European Union remain higher than before Russia’s invasion of Ukraine, even though markets have steadied in recent years.
The war, which began in February 2022 and has now entered its fifth year, reshaped Europe’s energy landscape. According to the European Council, Russia’s share of EU pipeline gas imports fell sharply from around 40 per cent in 2021 to about 6 per cent in 2025, following sanctions, embargoes and efforts to diversify supplies.
New data from Eurostat show that between the first half of 2021 and the first half of 2025, household electricity prices in the EU rose 30 per cent, from 22 cents per kilowatt-hour to 28.7 cents. Over the same period, natural gas prices climbed 79 per cent, from 6.4 cents to 11.4 cents per kilowatt-hour.
The Household Energy Price Index (HEPI), compiled by Energie-Control Austria, MEKH and VaasaETT, tracks monthly end-user prices in European capital cities. Its January 2026 figures indicate that electricity prices across EU capitals were 5 per cent higher than in January 2022. However, compared with January 2021, prices were up 38 per cent.
Some cities experienced particularly sharp increases over the five-year period. Electricity prices more than doubled in Vilnius, rising 102 per cent. Other large jumps were recorded in Bucharest (88 per cent), Bern (86 per cent), Kyiv (77 per cent), Amsterdam (75 per cent), Riga (74 per cent), Brussels (67 per cent) and London (64 per cent).
Only Copenhagen and Budapest posted declines over that period, at minus 16 per cent and minus 8 per cent respectively.
Among the capitals of Europe’s five largest economies, London and Rome saw notable increases, while Madrid and Berlin recorded relatively modest rises. Paris remained below the EU average increase.
Energy analysts at the European Energy and Climate Policy (IEECP) say the electricity mix has been a decisive factor. Countries such as Spain benefit from a higher share of wind, solar and hydropower, while Nordic nations rely heavily on hydropower, geothermal and wind energy, reducing exposure to fossil fuel price swings.
Looking only at the period from January 2022 to January 2026 presents a different trend. Copenhagen recorded a 44 per cent fall in electricity prices, while London, Madrid, Berlin and Rome also saw declines. Paris, by contrast, registered a 21 per cent increase. Vilnius showed the largest EU rise at 70 per cent, while Kyiv topped the overall list at 87 per cent.
Natural gas prices across EU capitals edged down by 1 per cent between January 2022 and January 2026. Berlin, Brussels and Athens recorded declines of around 40 per cent, while Riga, Warsaw and Lisbon saw strong increases.
Despite the recent stabilisation, household energy bills across much of Europe remain well above pre-invasion levels, reflecting the lasting impact of the energy crisis.
Business
Transatlantic Tensions on Digital Rules Highlight Need for Cooperation
Discussions between Europe and the United States over digital regulation continue to be marked by miscommunication and frustration, even as competitors observe from the sidelines. Europeans and Americans talk past each other while rivals watch. The European Union can set its own standards, but in an interconnected economy, decoupling fantasies and grandstanding won’t help.
The debate often centres on “free speech” concerns voiced by U.S. tech companies and policymakers in response to the EU’s legislative framework for digital platforms. In Europe, such narratives typically prompt defensive reactions. Some Europeans respond with a blunt message: “This is our land, our Union, our laws, follow them, or leave the EU—we’ll find alternative products to use!” Public awareness of American constitutional amendments is low across Europe, just as Americans pay little attention to European digital acts and regulations.
The transatlantic dialogue is further complicated by the global nature of social media platforms. Any EU legislation affecting user experience inevitably influences the functioning of these platforms worldwide, touching on what Americans see as free speech rights. The EU also seeks to extend its influence through the “Brussels effect,” ensuring that European rules shape global standards, while the U.S. maintains a large trade surplus in services and competes technologically with China. This mix of economic, political, and regulatory factors explains why U.S. attention is sharply focused on Europe’s digital policies.
Europeans argue that their 450-million-consumer market has the right to set rules that reflect local principles and values. Attempts to adjust or simplify regulations are difficult, with efforts often met with political resistance and scrutiny. The regulatory ecosystem in Europe supports industries of lawyers, consultants, and experts whose work depends on maintaining complex rules, making reform a sensitive topic.
On the American side, anti-EU rhetoric by public figures has sometimes compounded the problem, drowning out moderates and reinforcing defensive European responses. Analysts note that both regions have seen productive voices sidelined as grandstanding and negative statements dominate public discourse.
Observers argue that long-term thinking is necessary. By evaluating the EU-U.S. tech partnership in the broader context of global alliances, including China and Russia, policymakers can better assess priorities and avoid unnecessary disruption. Blank-slate decoupling between Europe and the United States is unrealistic, and delaying constructive dialogue risks broader economic consequences.
Experts warn that continued transatlantic infighting benefits other global powers and weakens the ability of both regions to set coherent standards in emerging technologies. The message from analysts is clear: cooperation, not confrontation, will determine whether the EU and U.S. can maintain leadership in digital regulation while safeguarding economic and technological interests.
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