Supreme Court Tariff Ruling Creates New Trade Uncertainty for European Businesses

A U.S. Supreme Court decision striking down President Trump's trade tariffs is causing mixed reactions among European companies. While some businesses welcome the relief, many industry leaders warn the ruling could lead to even more unpredictable trade policies and continued market instability.

European businesses are expressing cautious concern following a U.S. Supreme Court decision that eliminated a significant portion of President Trump’s trade tariffs, warning that the ruling may actually increase uncertainty in international commerce.

The nation’s highest court delivered a major blow to the Republican president by overturning his extensive tariff program, which had been implemented using emergency powers legislation. The decision is expected to have widespread effects across the global marketplace.

Despite celebrations from some companies that had fought lengthy court battles against these trade barriers, European industry organizations, businesses, and market experts are expressing worry that the court’s action could make international trade relationships even more complicated following difficult negotiations last year.

Paolo Castelletti, who leads Italy’s wine association UIV, expressed concern about the decision’s potential consequences. “This ruling … risks creating a boomerang effect, producing further uncertainty and a freeze on orders while operators wait for a clearer regulatory framework,” Castelletti stated.

The stakes are particularly high for Italian wine producers, as the United States represents their largest export market. Italian wine sales to America totaled approximately 1.9 billion euros ($2.3 billion) in 2024, accounting for nearly 25% of Italy’s worldwide wine exports.

Numerous companies are warning that Trump will probably seek alternative methods to implement comparable tariffs, which would reduce any benefits from lower trade barriers. Additionally, the situation could increase friction between America and its key trading partners, while obtaining tariff refunds may prove challenging.

In response to the court’s decision, Trump declared new worldwide tariffs of 10% for an initial 150-day timeframe and admitted uncertainty about whether any refunds would be available.

Steve Ovara, who heads the International Trade Practice Group at King & Spalding law firm, noted that companies his firm represents – ranging from major U.S. manufacturers to consumer and technology corporations – generally anticipate that any tariff relief will be temporary.

“The major issue everybody’s going to be dealing with for at least the short term is some additional uncertainty,” Ovara explained.

Wolfgang Grosse Entrup, the managing director of Germany’s chemical and pharmaceutical industry group VCI, which represents major companies including BASF, Bayer and Evonik, shared similar concerns.

“For our firms, this isn’t the start of a phase of stability, but a new round of uncertainty. Anyone who believes this means the tariff conflict is over is mistaken,” he said. “New tariffs based on a different legal basis are possible at any time.”

Peter Sand, chief analyst at shipping cost platform Xeneta, emphasized that political risks continue to affect freight companies, with supply chain risk reduction becoming an “irreversible trend.”

“The damage to many shippers’ supply chains is largely done and probably won’t be undone,” Sand observed.

France’s cosmetics trade group FEBEA, whose membership includes companies like L’Oreal, indicated it remains “very cautious” about the ruling and plans to monitor how the U.S. government responds, including potential new tariff implementations.

“We are all used to the twists and turns on this subject of customs duties,” said FEBEA secretary general Emmanuel Guichard.

Massimiliano Giansanti, who leads Italy’s agricultural organization Confagricoltura, acknowledged that the U.S. court decision “dismantles the entire legal basis” for Trump’s tariff system, but cautioned it creates complications for exporters who were just beginning to adjust to American trade barriers.

“All this generates deep instability at a time when we need certainty and have begun a process together with our U.S. importers,” Giansanti stated.

Irish whiskey exporters are taking a wait-and-see approach before making any moves, according to Eoin Ó Catháin, Director of the Irish Whiskey Association. He suggested that political discussions and tension reduction would more likely solve tariff issues.

“This isn’t a silver bullet to get rid of tariffs,” he said. “This is just another complication, it’s another twist in the story.”