EU will not agree to increase US tariffs after Supreme Court ruling: “A deal is a deal”

The European Commission has demanded that the United States abide by the terms of a trade deal between the EU and the United States struck last year.

This comes after the US Supreme Court struck down Donald Trump’s global tariffs and he responded with new tariffs across the board, Reuters reports.

The commission, which negotiates trade policy on behalf of the 27 EU member states, said Washington must provide “full clarity” on the measures it plans to take following the court’s ruling.

After the court struck down Trump’s global tariffs on February 20, the US president announced temporary, blanket tariffs of 10%, which he increased to 15% the next day.

“The current situation is not conducive to ensuring ‘fair, balanced and mutually beneficial’ transatlantic trade and investment, as agreed by both sides,” the European Commission said in a statement. “A deal is a deal.”

The comments were much harsher than the Commission’s initial response on Friday, which said only that it was studying the outcome of the Supreme Court ruling and was in contact with the US administration.

Last year’s trade deal set a 15% US tariff rate on most EU goods, except those covered by other sectoral tariffs such as steel. It also allowed zero tariffs on some goods such as aircraft and spare parts. The EU agreed to scrap import duties on many US goods and dropped its threat to retaliate with higher tariffs.

It is unclear whether Trump’s new 15% tariffs will replace the EU-US deal. If that happens, the EU’s zero tariff exemptions could disappear. The new tariffs could also be imposed on top of existing US tariffs under most-favoured-nation treatment, which is not covered by the EU-US deal.

Furthermore, the comparative advantage the EU had with the 15% tariff appears to have disappeared, as even countries without a deal face this rate.

USM previously reported that the US had fined MSC $22.67 million for violating tariff rules.