EU Snuffs Tariff Challenge

The EU Court of Justice recommended dismissing Zippo Manufacturing Co.’s legal challenge against EU retaliatory tariffs on U.S. goods, reinforcing the European Commission’s authority to impose such duties under international trade law.

Zippo had argued that, as the only known supplier of the affected lighter category, it was entitled to individual consultation before the duty was imposed.

The General Court agreed, annulling the regulation in part. However, the Commission appealed, asserting that the right to be heard under Article 41(2)(a) of the Charter of Fundamental Rights applies only to individual measures—not regulations of general application.

In her published opinion,EU Court of Justice Advocate General Tamara Ćapeta sided with the Commission, stating that the contested regulation “applies objectively to a category of goods and not to any particular undertaking,” and therefore does not confer an individual right to be heard.

She noted that affording such a right in this context “would not be feasible in practice” and would obstruct trade policy implementation (Case C‑811/23 P).

The opinion (ECLI:EU:C:2025:416), while non-binding, supports the Commission’s 2020 decision to levy a 20% tariff on U.S.-made lighters—part of a broader response to U.S. tariffs on EU steel and aluminum during President Trump’s first term.

Ćapeta concluded that the “right to be heard” did not apply, as the tariffs were not individual administrative measures, but general regulations. The EU General Court had previously ruled in Zippo’s favor in 2023, finding the Commission erred by failing to consult the company. That ruling is now under appeal.

This opinion bolsters the EU’s legal footing as it faces escalating tariff threats from President Trump, who has warned of 50% duties on most EU imports if a trade agreement is not reached by July 9. EU and U.S. officials have indicated ongoing progress in those negotiations.

Sources:

•Case C‑811/23 P European Commission v. Zippo Manufacturing Co., Zippo GmbH

• Bloomberg News, “EU Gets Legal Backing on Retaliatory Tariffs Against US,” June 6, 2025.