Europe Warns US Over Trade Deal Violations Amid New Tariffs

According to the Economic Desk of Webangah News Agency, following the US Supreme Court’s rejection last Friday of President Donald Trump’s use of emergency powers to impose retaliatory tariffs worldwide, the US President immediately announced a new 10% global tariff, which he later increased to 15%.

Bernd Lange, Chair of the EU Trade Committee, stated that the new global tariff would be added to existing duties, meaning certain goods would be subject to rates exceeding the 15% ceiling agreed upon by the European Union and the United States in their trade deal.

Sources familiar with the Commission’s assessment indicated that under Trump’s new tariff plan, products such as butter, plastics, textiles, and chemicals would face tariffs above the 15% limit. These new global tariffs could remain in place for up to 150 days.

The EU-US trade agreement, concluded last summer between Trump and Ursula von der Leyen, President of the European Commission, imposed a 15% tariff rate on most EU goods exported to the US, while simultaneously removing tariffs on many American products entering the bloc. The US also continues to impose a 50% tariff on European steel and aluminum imports.

The bloc had agreed to this asymmetrical arrangement hoping to avert a full-blown trade war with Washington and to maintain US security support.

The European Parliament on Monday suspended legislative work to ratify the EU-US agreement, demanding clarification on Trump’s new trade policy.

Maroš Šefčovič, the EU’s Trade Commissioner, held discussions with David Bisbee, acting US Trade Representative, and Howard Luttig, acting Commerce Secretary, and presented a report to European lawmakers and a group of EU ambassadors on Monday.

According to informed sources, Šefčovič informed them that a transition period of up to four months might be necessary to finalize the details of the new trade policy.

Sources who wished to remain anonymous stated that many ambassadors speaking at the meeting expressed their desire to adhere to the trade agreement, despite the uncertainty created by the US Supreme Court’s decision.

Both sides have declared their intention to abide by the trade agreement, but some sources indicated that it remains unclear how and at what pace this can be achieved, as reported by Bloomberg.