The European Union has warned it will not accept any increase in U.S. tariffs that breaches last year’s transatlantic trade agreement, declaring that “a deal is a deal” after a major policy shift in Washington.
The reaction follows a ruling by the Supreme Court of the United States striking down global tariffs introduced by former President Donald Trump. In response, Trump announced temporary across-the-board tariffs of 10%, which he later raised to 15%.
Brussels Demands Clarity
The European Commission, which negotiates trade policy on behalf of the EU’s 27 member states, called on Washington to provide “full clarity” on its next steps.
As reported by Reuters, the Commission said the current situation is “not conducive to delivering fair, balanced, and mutually beneficial transatlantic trade and investment,” emphasizing that commitments made in last year’s joint statement must be respected.
The tone marked a significant shift from the Commission’s earlier, more cautious response following the court ruling.
What Is at Stake?
Under the 2025 EU-U.S. trade agreement, most EU goods faced a 15% U.S. tariff ceiling, while some products — including aircraft and spare parts,benefited from zero tariffs. In return, the EU removed import duties on several American goods and withdrew plans for retaliatory measures.
However, it remains unclear whether Trump’s newly announced 15% tariffs override the existing agreement. If they do, zero-tariff exemptions could vanish, and additional “most-favoured-nation” duties could be applied on top of existing rates.
Economic Impact
Trade policy monitor Global Trade Alert estimates the EU economy could be 0.8 percentage points worse off under the new measures, with Italy potentially facing an additional 1.7 percentage points in U.S. tariffs.
The development threatens to erase the comparative advantage EU exporters had secured under the deal and could reignite transatlantic trade tensions at a sensitive economic moment.
Further diplomatic engagement is expected as both sides assess the legal and economic implications of the tariff changes.
