FRANKFURT, Germany — European lawmakers are demanding answers from Washington after President Donald Trump announced new import taxes that could undermine a trade agreement negotiated this summer, leading EU officials to delay ratification of the deal.
The European Parliament’s trade committee canceled Tuesday’s scheduled vote on the agreement following Trump’s Saturday announcement of a 15% worldwide tariff on imports. This move came after the Supreme Court rejected Trump’s previous attempt to impose tariffs using emergency powers, prompting the president to invoke different trade legislation to justify the new rates that begin Tuesday.
“A deal is a deal,” stated European Commission spokesperson Olof Gill, summarizing the EU’s stance. “So now we are simply saying to the US, it is up to you to clearly show to us what path you are taking to honor the agreement.”
The original US-EU agreement established a maximum 15% tariff rate on most European products entering America, while eliminating tariffs entirely on American industrial exports to Europe. Though the deal raised costs for consumers and businesses compared to the previous 4.8% average, it provided market stability that economists credit with helping Europe dodge recession last year.
Trade committee chairman Bernd Lange explained that Trump’s newly announced 15% rate would stack on top of existing tariffs, violating the ceiling established in their agreement. This prompted legislators to postpone Tuesday’s committee vote.
The situation also raises concerns about separate agreements negotiated with individual nations, including Brazil, India, and Britain. Britain’s deal caps tariffs at 10%, while India accepted 18% and Vietnam agreed to 20%. Though the Supreme Court ruling doesn’t directly impact these bilateral arrangements, they were negotiated using the threat of tariffs that have now been invalidated.
US Trade Representative Jamison Greer addressed these concerns Sunday on CBS’s “Face the Nation,” stating the administration had warned negotiating partners that Trump intended to pursue tariffs regardless of the court’s decision. “Whether we won or lost, there were going to be tariffs,” Greer explained.
Greer emphasized that the bilateral agreements “are good deals, we expect to stand by them, we expect our partners to stand by them.”
Berenberg bank economist Atakan Bakiskan noted that switching from country-specific rates to a uniform 15% global tariff “will have considerable implications elsewhere.” Some nations would see reduced rates, including Brazil, which would drop nearly 15 percentage points, and China, facing a reduction of almost 10 percentage points.
The legal authority Trump is using for these latest tariffs only permits them for 150 days unless Congress approves an extension. This timeframe could allow Trump to seek alternative legal justifications for his trade policies.
The uncertainty affects both European businesses and the American economy, where consumers and companies bear the cost of import tariffs. “Uncertainty around trade policy appears here to stay — putting continued pressure on the US economy,” Bakiskan observed.
