EU Demands U.S. Honor Trade Pact After Tariff Turmoil

Brussels seeks clarity as Trump raises duties following court ruling
EU Demands U.S. Honor Trade Pact After Tariff Turmoil
[Antoine Schibler/Unsplash]
Updated on
2 min read

The European Union on Sunday urged the United States to adhere strictly to the terms of a transatlantic trade agreement reached last year, after President Donald Trump imposed new global tariffs in the wake of a Supreme Court ruling that struck down much of his previous tariff regime.

The European Commission, which negotiates trade policy for the bloc’s 27 member states, called for “full clarity” from Washington on its next steps, warning that any deviation from agreed limits would undermine the stability of transatlantic trade relations.

Trade Deal Tested

Last year’s agreement set a maximum 15 percent U.S. tariff on most European goods, with some sectoral exceptions such as steel, and allowed zero tariffs on selected products including aircraft and spare parts.

In return, the European Union removed duties on many American goods and withdrew plans for retaliatory measures.

Following the Supreme Court’s decision on Friday to invalidate broad elements of Mr. Trump’s global tariff campaign, the president announced temporary across-the-board tariffs of 10 percent, later increasing them to 15 percent.

“The current situation is not conducive to delivering 'fair, balanced, and mutually beneficial' transatlantic trade and investment,” the Commission said.

“A deal is a deal.”

It added that EU products “must continue to benefit from the most competitive treatment, with no increases in tariffs beyond the clear and all-inclusive ceiling previously agreed.”

Political Uncertainty

The Commission’s remarks marked a sharper tone than its initial reaction to the court ruling, reflecting mounting concern in Brussels.

EU Trade Commissioner Maros Sefcovic spoke Saturday with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, and the Commission said it remained in close contact with Washington.

Mr. Greer said U.S. trade agreements with the European Union and other partners remained in force and expressed confidence they would be upheld.

European Central Bank President Christine Lagarde said she hoped the implications of the ruling would be clarified.

Meanwhile, the European Parliament’s trade committee is reconsidering its planned approval of the deal, with its chair calling for legislative work to pause pending legal assessment and firm commitments from the United States.

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