Trade attorneys tell CNBC that the looming U.S. Supreme Court ruling on President Donald Trump’s tariffs could impact Trump’s threats to levy new tariffs on NATO members over the issue of Greenland’s sovereignty.
The tariff threats made by Trump over the weekend would likely rest on the same legal authority under the International Emergency Economic Powers Act (IEEPA) to be decided by the Supreme Court.
“Although the president hasn’t specified if these tariffs would be IEEPA-based, the U.S. Supreme Court decision on IEEPA would likely affect the outcome of the threatened Greenland tariffs,” said Michael Lowell, partner and chair of the Global Regulatory Enforcement Group at Reed Smith.
“Similar to the Brazil tariffs; if the Supreme Court rules IEEPA doesn’t give the president tariff power, then these tariffs being threatened on NATO members would be illegal,” Lowell said.
Trump announced Saturday that if a deal is not reached allowing Washington to acquire Greenland, the eight European countries would face increasing tariffs, starting at 10% on Feb. 1 and rising to 25% on June 1.
