End of US tariffs clouded by uncertainty

The US Supreme Court’s decision to overturn a large part of President Donald Trump’s trade tariffs has injected fresh uncertainty into global commerce. In response, Trump announced new global tariffs of 10 per cent for an initial period of 150 days.

While many companies welcomed the ruling after lengthy legal battles, European trade associations, businesses and analysts warned that the move could further complicate relations following last year’s difficult negotiations.

"This decision risks creating a boomerang effect, causing further uncertainty and a freeze on orders while operators wait for a clearer regulatory framework," said Paolo Castelletti, secretary general of the Italian wine association UIV.

Many companies have cautioned that Trump is likely to seek other avenues to impose similarly high duties, thereby limiting the benefit of the new, slightly lower rates. At the same time, there is a risk of renewed tension between the US and its main trading partners. Reversing the tariffs is also likely to prove difficult.

(reuters, sak)