The European Union has frozen talks on a United States trade deal following U.S. President Donald Trump’s latest tariff hike.
This follows Trump's retaliation to the Supreme Court striking down his global tariff policies by introducing a new universal 10% levy under a different legal framework.
He also increased the global tariff rate to 15%, the legal maximum, which can be in place for 150 days before congressional approval is required.
This set of alarm bells for officials in Europe and London who said Trump’s new tariff policy could upend trade deals signed with the U.S. last year.
Leaders have asked for clarification on what the new tariff policy framework means in practice for their respective trade deals, which saw most EU exports to the States hit with a 15% levy and 10% for those from the U.K.
The European Parliament’s trade committee held an emergency meeting following the new tariff announcement to discuss trade.
Chair of the European Parliament’s Committee on International Trade, Bernd Lange, said legislative work was “on hold” following the U.S. Supreme Court ruling.
“The situation is now more uncertain than ever,” Lange said in a statement.
“This runs counter to the stability and predictability we sought to achieve with the Turnberry Deal.
“The proposed replacement for IEEPA, Section 122, applies indiscriminately to all countries exporting to the United States and is imposed on top of the Most Favoured Nation (MFN) rate.
“As a result, imports from the EU into the US would be subject to an applied rate exceeding the 15% threshold. This, in itself, constitutes a clear departure from the terms of the Turnberry Deal.”
Trump has also doubled down on his new tariffs in a post to Truth Social.
“Any Country that wants to “play games” with the ridiculous supreme court decision, especially those that have “Ripped Off” the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to,” he said.
“BUYER BEWARE!!!”
