Europe US tariff relief comes with a sting in the tail

From European winemakers to chemical companies and distillers, the US Supreme Court ruling knocking down a large part of US President Donald Trump's trade tariffs comes with a sting in the tail - an even more uncertain trade outlook.

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In a decision that will ripple through the global economy, the top US court struck down Mr Trump’s sweeping tariffs imposed under a law meant for use in national emergencies, handing a stinging defeat to the Republican leader.

But while many businesses cheered after lengthy legal battles against tariffs, European trade groups, companies and analysts worried that the ruling may make trade relations even more messy after hard-struck trade deals in 2025.

Mr Paolo Castelletti, secretary-general of Italian wine association UIV, said: “This ruling... risks creating a boomerang effect, producing further uncertainty and a freeze on orders while operators wait for a clearer regulatory framework.”

The US is the top market for Italian wines, with about €1.9 billion (S$2.8 billion) in exports in 2024, making up almost a quarter of Italy’s total wine shipments globally.