European Union politicians are set to freeze their approval of a key trade deal with the United States after a Supreme Court ruling struck down many of President Donald Trump’s tariffs.
The European Union and United States clinched a deal in July last year that saw Washington impose 15% duties on most European goods.
The European Parliament’s trade committee had been due to vote tomorrow on removing tariffs on US industrial goods – a key step toward implementing Europe’s side of the deal.
But parliament negotiators convened an urgent meeting today to decide whether to delay their green light, and politicians from the main political groups told AFP they backed putting the deal on ice until it is clearer what the US ruling means.
Both politicians and the EU’s executive are seeking to understand the impact for the bloc, with US Trade Representative Jamieson Greer telling US media yesterday that deals with China, the EU and other partners will remain in force.
Olof Gill, spokesperson for the EU’s Trade and Security Commissioner, said the EU will make a “mature assessment” on US tariff changes once it is understood precisely what the US intends to do now and what legal basis it intends to use.
Speaking on RTÉ’s Morning Ireland, Mr Gill said there is a lot of uncertainty and instability in the US, but the EU needs to know what any changes will mean for tariffs and what product groups apply to.
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He said that EU colleagues had been in touch with their American counterparts over the weekend and other meetings will happen in the coming days.
“The US cannot fully account for what’s happening or what precisely is coming next at this point in time. We are certainly not going to rush to judgement or decide on any next steps until that clarity is present,” he stated.
He added that the EU will make a mature assessment on how the tariff changes relate to the agreement reached in Scotland last year and decide what to do then.
The EU has to allow the Americans get their house in order and say what they intend to do next, and the EU will make an assessment on that basis, he added.
The Supreme Court ruled Mr Trump does not have the authority to impose tariffs under a 1977 law he has relied on, triggering uncertainty compounded after the president reacted angrily with a new 15% global duty.
The new global duties are due to kick in tomorrow, with exemptions for some products. They will expire in 150 days unless Congress extends them.
China has urged the United States to cancel the unilateral tariffs, while several countries are studying the Supreme Court ruling and Trump’s subsequent tariff announcements.
Better the deal you know?
After Friday’s ruling, Mr Trump responded first with a new 10% global duty on imports under a different legal authority, before raising it to 15%.
Under the EU-US trade agreement, Washington had also agreed a blanket 15% tariff on most goods from the bloc, but his latest move could in reality see the EU face higher levies.
That is because the new duties would come on top of existing ones of a few percent, known as “most favoured nation” tariffs.
China: ‘No winner in trade war’
The Supreme Court ruling was a stunning rebuke to Mr Trump from a judicial body that has largely sided with him since his return to office.
It marked a major political setback in striking down his signature economic policy that has roiled the global trade order.
China’s commerce ministry said it was conducting a “comprehensive assessment” of the ruling’s impact, and called on Washington to lift the tariffs.
“There are no winners in a trade war and protectionism leads nowhere.”
China’s foreign ministry also noted it was paying “close attention” to potential moves by the United States to maintain increased tariffs.
Beijing’s warning comes weeks ahead of Mr Trump’s planned visit to China, which would be his first in his second term.
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