EU rejects increase in US tariffs after Supreme Court ruling

The European Commission has called on the United States to honor last year’s EU-U.S. trade agreement, after the U.S. Supreme Court struck down President Donald Trump’s sweeping global tariffs — only for Trump to respond by imposing a new round of across-the-board duties.​​​​​​​​​​​​​​​​

The move came after the court invalidated Trump’s earlier tariff policy on Friday. In response, he announced temporary 10% US tariffs, which were increased to 15% a day later. 

The Commission called on Washington to provide “full clarity” on how it plans to proceed following the ruling.

“The current situation is not conducive to delivering ‘fair, balanced, and mutually beneficial’ transatlantic trade and investment, as agreed to by both sides” in the joint statement setting out the terms of last year’s trade agreement, the Commission said. “A deal is a deal.”

The statement marked a firmer tone compared to Friday, when the Commission said it was reviewing the court’s decision and staying in contact with the U.S. administration.

Under the agreement reached last year, most EU goods were subject to a 15% U.S. tariff rate, except for products covered by separate sectoral measures such as steel. 

Some goods, including aircraft and spare parts, were granted zero tariffs. In return, the EU lifted import duties on many U.S. goods and withdrew plans for retaliatory levies.

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It remains unclear whether Trump’s new 15% US tariffs replace the existing deal. If they do, the EU’s zero-tariff exemptions could end. 

The new import duties could also be added to pre-existing ‘most-favoured-nation’ rates, which is not how the current agreement works.

Trade monitor Global Trade Alert estimates the EU economy would be 0.8 percentage points worse off overall, with Italy facing an additional 1.7 percentage points in U.S. tariffs.

“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 EU executive said, adding that unpredictable trade measures disrupt markets and weaken confidence.

The Commission said EU Trade Commissioner Maros Sefcovic discussed the matter on Saturday with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.

(Reuters)