Lagatar24 Desk
Brussels: The European Union has called on the United States to honour its existing trade agreement after President Donald Trump raised global tariffs to 15%, following a US Supreme Court ruling that invalidated his earlier tariff framework.
EU Insists Trade Agreement Must Be Respected
After the Supreme Court deemed Trump’s global tariffs illegal, the US administration swiftly adjusted them from 10% to 15%. In response, the European Commission stated that the current situation is not conducive to maintaining “fair, balanced, and mutually beneficial” transatlantic trade relations as previously agreed. Emphasising its position, the Commission said, “A deal is a deal,” and urged Washington to provide full clarity on its intended course of action after the court’s decision.
Details of the Existing EU-US Trade Deal
Last year’s EU-US trade agreement established a 15% tariff ceiling on most EU goods entering the US, while granting zero tariffs on selected items such as aircraft and spare parts. Certain sector-specific tariffs, including those on steel, were excluded. In return, the EU removed import duties on several American products and abandoned plans for retaliatory measures.
Uncertainty Over Impact of New Tariffs
It remains unclear whether the newly imposed 15% tariffs override the previous agreement. If applied universally, EU goods that previously benefited from zero tariffs could lose those exemptions. Additionally, the new duties could be layered on top of existing US “most-favoured-nation” tariffs—an action not permitted under the EU-US trade pact. The revised tariffs also eliminate the EU’s comparative advantage, as countries without a trade agreement now face the same 15% rate.
According to Global Trade Alert, overall US tariffs on EU goods could increase by 0.8 percentage points, with Italy potentially seeing a 1.7-point rise, as reported by Reuters.
High-Level Discussions Continue
EU Trade Commissioner Maros Sefcovic discussed the matter with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. The Commission reiterated that EU products must continue to receive competitive treatment and that tariffs must not exceed the previously agreed ceiling. It warned that unpredictable tariff policies disrupt markets and weaken global economic confidence.
