For Europe, US tariff relief comes with a sting in tail
From European winemakers to chemical companies to distillers, the U.S. Supreme Court’s decision striking down a large swath of President Donald Trump’s trade tariffs brings a pain in the back: an even more uncertain trade outlook.
In a decision that will have ripple effects on the global economy, the US Supreme Court has dealt the Republican president a bitter defeat by striking down sweeping tariffs imposed by Trump under a law intended to be used in national emergencies.
But while many businesses rejoiced after protracted legal battles against the tariffs, European trade groups, companies and analysts worry the decision could further complicate trade relations after difficult trade deals in 2025.
“This decision… risks creating a boomerang effect, creating further uncertainty and freezing orders while operators wait for a clearer regulatory framework,” said Paolo Castelletti, secretary general of the Italian wine association UIV.
The US is the largest market for Italian wines, with exports of about 1.9 billion euros ($3.2 billion) in 2024, accounting for almost a quarter of Italy’s global wine shipments.
Many companies have warned that Trump would likely seek other means to impose similar tariffs, blunting the benefits of lower taxes and that the move could escalate tensions between the United States and its major trading partners.
It will also be difficult to get a tariff refund.
Responding to the decision, Trump announced new global tariffs of 10 percent for an initial 150-day period and acknowledged that it was unclear if or when there would be any refunds.
Steve Ovara, chair of the International Trade Practice Group at law firm King & Spalding, said the companies his firm advises, from major U.S. manufacturers to consumer and technology groups, mostly expect any relief from tariffs to be short-lived.
“The main issue that everyone is going to be dealing with, at least in the short term, is some additional uncertainty,” he said.
Wolfgang Grosse Entrup, director general of VCI, the German chemical and pharmaceutical lobby that represents companies such as BASF, Bayer and Evonik, agrees.
“Anyone who thinks this means the tariff dispute is over is wrong,” he said.
“New tariffs based on a different legal basis are always possible.”
FEBEA, the French cosmetics association of which companies such as L’Oreal are members, said it was “very cautious” about the decision and would monitor how the US government reacts, including possible new tariffs.
“We are all used to these ups and downs on tariffs,” said FEBEA secretary general Emmanuel Guichard.
