European stocks close lower as enthusiasm fades after judges halt Trump tariffs

European stock markets closed lower on Thursday, as investors rode the latest turn in the Trump tariff rollercoaster. Europe’s Stoxx 600 index ended the session 0.19% lower, with Germany’s DAX down 0.44%.

To recap, on Wednesday evening a federal trade court struck down President Donald Trump’s “reciprocal tariff” policy, which slapped hefty universal duties on imports from countries around the world, and ordered the administration to stop collecting them.

Global equities initially brightened on the news, though economists and U.S. officials alike argue that Trump is likely to find a work-around to the block. Meanwhile, analysts point out that a huge number of uncertainty still hangs over businesses and global trade.

“The upside risks to U.S. inflation and downside risks to GDP would be reduced if the Supreme Court also rules against the tariffs imposed under the International Emergency Economic Powers Act, but it would be unlikely to mark the end of the tariff war given the various other routes through which the Trump administration could impose tariffs,” economists at Capital Economics said in a note.

On Friday, CNBC be monitoring preliminary German inflation figures ahead of the European Central Bank’s monetary policy meeting next week.