Trump’s New Tariff Policy Breaks Trade Deal With EU

The US trade deal with the European Union appears to be collapsing, as the bloc warned that Trump’s shifting tariff priorities likely violate the agreement.

The new global tariff would be added to existing levies, according to Bernd Lange, chair of the European Parliament’s trade committee. (Photo: EEAS - European Union)

Lawmakers voted to postpone ratification of the deal to gain “full clarity” on Trump’s next tariff steps following a setback in the US Supreme Court, Brett LoGiurato reported for Yahoo Finance.

A European Union assessment found that President Donald Trump’s new tariff policy would increase levies on some of the bloc’s exports — including cheese and certain agricultural products — above the level permitted under the agreement, Bloomberg News also reported.

After the Supreme Court struck down Trump’s use of an emergency-powers law to impose so-called reciprocal tariffs globally, he announced a new 10% global levy, later threatening to raise it to 15%.

The European Commission, which handles trade matters for the bloc, told lawmakers Monday that the new global tariff would be added to existing levies, according to Bernd Lange, chair of the European Parliament’s trade committee.

The cumulative rate would push some goods above the 15% ceiling agreed upon in the EU-US trade deal.

Under Trump’s new tariff program, products including butter, plastics, textiles, and chemicals could face levies exceeding that threshold, according to people familiar with the Commission’s assessment.

The new global tariffs can remain in place for up to 150 days.