After US President Donald Trump's global tariffs were invalidated by the American Supreme Court, the European Commission has urged the country to stick to last year's EU-US trade agreement. Last week following the US Supreme Court's ruling that deemed his global tariffs illegal, Trump quickly raised them from 10% to 15%.
In response to the move, the Commission said, "The current situation is not conducive to delivering 'fair, balanced, and mutually beneficial' transatlantic trade and investment, as agreed to by both sides."
"A deal is a deal," the bloc further added.
The EU executive said Washington must provide "full clarity" on its intended actions following the court’s decision. The statement was stronger than the Commission’s initial reaction on Friday, which had said only that it was studying the outcome and maintaining communication with the U.S. administration.
Last year’s trade deal set a 15% tariff on most EU goods entering the US, while allowing zero tariffs on certain products such as aircraft and spare parts. Some sector-specific tariffs, like those on steel, were excluded. The EU, in return, lifted import duties on numerous US goods and dropped plans for retaliatory levies.
It is currently unclear whether Trump’s 15% tariffs override the deal. If so, EU products enjoying zero tariffs could lose their exemptions, and the new levies might be added on top of existing ‘most-favoured-nation’ US duties—something not permitted under the EU-US agreement.
The new tariffs also remove the EU’s comparative advantage, as even countries without a trade deal now face the same 15% rate. According to Global Trade Alert, the EU could see a 0.8 percentage point increase in U.S. tariffs overall, with Italy facing a rise of 1.7 points, Reuters reported.
"In particular, 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," the Commission said. It added that unpredictable tariffs disrupt markets and undermine global confidence.
EU Trade Commissioner Maros Sefcovic discussed the situation with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick on Saturday.
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