European Union officials are bracing for months of trade negotiations with the United States following President Donald Trump’s implementation of new import fees that could jeopardize a trade agreement reached between the two regions last year.
European Trade Commissioner Maros Sefcovic addressed the European Parliament on Tuesday, explaining that the bloc is entering what he called a “transitional period” as both sides work to resolve issues stemming from Trump’s recent “import surcharge” policy.
Sefcovic revealed that his American counterparts, including Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, have assured him they remain committed to honoring last year’s trade pact.
“Of course, what is now ahead of us, this is the transitional period where they are figuring out how to deal with this really landmark court ruling and we are talking every day,” Sefcovic explained to lawmakers. He noted that the surcharge could remain active for as long as 150 days, creating a July 24 target date for reaching a resolution.
“When I was talking to my counterparts yesterday, today, they believe that it will happen even in a shorter period of time, three, four months,” he added.
The United States began enforcing a temporary 10% surcharge on Tuesday for all products not specifically exempted, following a Supreme Court decision that overturned Trump’s previous global tariff structure. Trump announced over the weekend that he plans to raise this rate to 15%.
During his parliamentary testimony, Sefcovic encouraged the trade committee to move forward with a March vote on eliminating EU import duties, despite lawmakers postponing their originally scheduled vote. The proposal would still require additional negotiations between legislators and EU member governments before reaching a final assembly vote.
Several European lawmakers have expressed concerns that the trade arrangement favors the United States unfairly. Despite these reservations, many appeared ready to support the deal with certain conditions, including an 18-month expiration clause. They have also criticized a separate 50% American tariff implemented in August targeting steel and aluminum components in over 400 products, including wind turbines and motorcycles, arguing it undermines the July agreement.
“I got reassurances from U.S. colleagues that they know that this is a big problem for us and that they’re looking into this matter, and hopefully we will be having better news in that regard rather soon,” Sefcovic stated.
Under the current trade deal, most European goods face a 15% U.S. tariff rate, while the EU agreed to eliminate import duties on numerous American products.
If Trump’s new surcharge takes precedence over the existing agreement, some of Europe’s duty-free exemptions could be eliminated. The additional tariffs might also stack on top of existing “most-favoured-nation” U.S. duties, unlike the current EU-U.S. arrangement. For certain cheese products, the 10% surcharge could push total tariffs to approximately 25%.
