German Chancellor Friedrich Merz said he expects some relief for German businesses after the US Supreme Court struck down key elements of President Donald Trump’s tariff framework, but warned that ongoing uncertainty remains a major risk for both European and American economies.
The ruling invalidated a broad set of tariffs introduced under emergency powers, a decision that could reshape transatlantic trade relations. While many exporters welcomed the development, Merz cautioned that the overall situation remains complex. He stressed that uncertainty over future US trade policy continues to weigh on corporate planning, investment decisions, and cross border supply chains.
Speaking to German broadcasters, Merz said he hopes the tariff burden on Germany’s export driven economy will ease, particularly for manufacturers heavily exposed to the US market. Germany, Europe’s largest economy, relies significantly on exports of cars, machinery, and industrial goods, sectors that have faced direct and indirect pressure from trade tensions in recent years.
However, Merz noted that not all tariffs were eliminated by the court’s decision. Sector specific measures on automobiles, steel, and aluminum are understood to remain in place, and President Trump has signaled plans to introduce or expand temporary levies on a broad range of imports. A recently announced 10 percent import tariff, later raised to 15 percent, has renewed concerns that policy volatility may persist despite the legal setback.
The German chancellor emphasized that tariff policy is a matter for the European Union as a whole, not individual member states. He said he would coordinate closely with EU partners to establish a unified European position ahead of his upcoming visit to Washington. Presenting a coordinated stance is seen as crucial in negotiations, given the EU’s role as a major trading bloc and regulatory authority.
Merz described the constant shifts in tariff policy as a form of economic poison, arguing that unpredictability is more damaging than clearly defined trade barriers. Businesses on both sides of the Atlantic require stable rules to plan production, allocate capital, and manage long term contracts. Persistent policy swings risk undermining investor confidence and slowing growth at a time when global demand is already facing headwinds.
The broader global economy is closely watching the evolving US trade landscape. Changes in tariff structures can affect currency markets, commodity flows, and multinational corporate earnings. For Germany in particular, any sustained easing of trade tensions with the United States would provide support to key export industries, but lingering legal and political uncertainty continues to cloud the outlook.
As European leaders prepare for discussions with US counterparts, the focus remains on restoring clarity to trade relations and reducing the volatility that has characterized recent years in transatlantic economic policy.
