European Union Pauses U.S. Trade Deal Amid Fresh
Tariff Uncertainty
The E.U. isn’t throwing out the deal it
agreed with the United States before President Trump’s tariffs were overruled,
but European officials want more clarity first.
1.
Pause in Implementation:
The European Union has temporarily paused work on implementing its trade deal
with the United States.
2.
Reason for Pause:
European officials are seeking clarity after the Supreme Court of the United
States struck down President Donald Trump’s earlier sweeping tariffs.
3.
Original Trade Deal Context:
o
Last year, the EU negotiated a deal capping most
tariffs at 15%.
o
The agreement aimed to stabilize transatlantic
trade ties.
4.
New Tariff Development:
o
Trump imposed a new 15% global tariff using
a different legal authority.
o
This tariff stacks on top of existing duties,
raising effective rates for many European exports.
5.
Impact on EU Products:
o
Example: Parmesan and Camembert cheese.
o
Earlier 15% tariff now combined with new 15%,
pushing total tariffs close to 30%.
6.
European Parliament Reaction:
Bernd Lange, Chair of the European Parliament’s International Trade Committee,
confirmed a scheduled vote on the deal was put on hold due to uncertainty.
7.
Temporary Legal Authority:
The new U.S. tariff authority lasts 150 days, requiring Congressional
approval for extension — adding further uncertainty.
8.
EU Leadership Position:
o
Maroš Šefčovič emphasized that “full
respect” for the agreement is essential.
o
Ursula von der Leyen had negotiated the deal with
Trump in Turnberry, Scotland.
9.
Political Sensitivity in Europe:
o
The agreement was initially viewed as favoring the U.S.
o
However, many EU policymakers saw it as the best
achievable compromise.
10.
Future Risks:
·
The Trump administration may initiate national
security-based investigations into EU digital regulations.
·
Trump warned trade partners against retaliatory
action, threatening even higher tariffs.
Overall
Significance
·
The pause reflects rising uncertainty in
transatlantic trade relations.
·
Stacked tariffs undermine the earlier 15% cap
negotiated in the trade deal.
·
The temporary nature of the new U.S. tariffs and
potential for further escalation have complicated EU decision-making.
·
The situation highlights growing volatility in
global trade governance following the Supreme Court’s ruling.
European
Union officials said on Monday (23.02.2026) that they were pausing work toward
implementing their trade deal with the United States, as they try to understand
what President Trump will do after a pivotal Supreme Court ruling.
Last
week, the Supreme Court struck down Mr. Trump’s sweeping tariffs, which he had
used to reset trading relationships around the globe — including with the
European Union, which had negotiated for a 15 percent rate in a deal last year.
Mr.
Trump moved rapidly over the weekend to replace those levies. But he has now
applied a 15 percent tariff on nations around the world, using a different
authority from the one ruled on by the Supreme Court, which stacks on top of
existing tariffs. For many producers in Europe, that means the actual tariff
they face will be higher than under the deal.
A
“whole range of products which are now much higher than the 15 percent in the
old agreement,” Bernd Lange, a German member of European Parliament and chair
of its international trade committee, said on Monday.
Mr.
Lange’s committee was meant to vote on the trade deal with the United States on
Tuesday, but decided to put that on hold until there was greater clarity.
He
pointed to products like European cheese: U.S. importers already paid 15
percent tariffs on Parmesan and Camembert before last year’s trade deal. Under
the trade deal, cheese was capped at 15 percent. But now, the existing rate
will be added to the new 15 percent levy, making for a tariff of nearly 30
percent. Plus, Mr. Lange pointed out, it is not clear what Mr. Trump’s
administration will do next. The tool that Mr. Trump is now using to keep
tariffs at 15 percent lasts only 150 days, after which Congress would need to
approve an extension.
“This
is so uncertain,” Mr. Lange said. “It’s unclear if there will be additional
measures.”
European
Union officials have been clear that they would like to stick by their trade
deal. Maros Sefcovic, the European Union’s trade commissioner, wrote on social
media that “full respect” for the trade agreement was “paramount.”
Ursula
von der Leyen, the president of the European Union’s executive arm, made the
rough agreement with Mr. Trump last year during a meeting at his golf course in
Turnberry, Scotland.
The
package has been unpopular in Europe: From the start, it was widely seen as an
unbalanced agreement that favored the United States.
But
many policymakers have concluded that it was probably the best deal they could
have achieved. The agreement capped tariffs on most products at 15 percent,
while Europe managed to hold firm on key red lines, including leaving its
digital services regulations unchanged.
The
problem now is that the situation has changed, and the Trump administration has
suggested that more adjustments could come.
Administration
officials have suggested that they could use other powers, including
investigations based on national security over digital regulations or other
issues, to maintain high tariffs.
Mr.
Trump, for his part, warned American trading partners not to “play games” in
response to the Supreme Court decision, writing in a post on Truth Social on
Monday.
Nations
that do, he said, “will be met with a much higher Tariff, and worse, than that
which they just recently agreed to.”