US President Donald Trump's new tariffs will cause approximately 4.2 billion euros of the European Union's exports to be subject to taxes above the agreed 15 percent ceiling in the EU-US trade agreement.
Redaksiya reports that US President Donald Trump's new tariffs will cause approximately 4.2 billion euros ($5 billion) of the European Union's exports to be subject to taxes above the agreed 15 percent ceiling in the EU-US trade agreement. According to individuals close to the EU's assessment of rates, Trump's new policy will push taxes applied to European exports, including cheese, butter, some agricultural products, as well as various plastic, textile products, and chemicals, beyond the maximum permitted level.
According to sources speaking to Bloomberg, other products, such as some alcoholic beverages, will face rates below 15 percent. After a US court overturned Trump's authority to use the emergency powers law to impose tariffs, which Trump called "reciprocity" globally, Trump announced a new 10 percent global tax. He later threatened to raise it to 15 percent, but has not yet implemented it. The tariff in question is added to existing rates and can remain in effect for five months. Responding to a request for comment on the matter, European Commission spokesperson Olof Gill reiterated his February 24 statement, saying, "The EU should continue to benefit from the most competitive relationship without any tariff increases beyond the ceiling previously agreed upon explicitly and comprehensively." Gill added that approximately 7 percent of EU exports would remain above the 15 percent maximum limit under the new US tariff regime.
The EU-US trade agreement, reached last summer between Trump and Commission President Ursula von der Leyen, foresees the application of a 15 percent customs duty on most of the EU's exports to the US, while also including the abolition of tariffs on many products sent from the US to the Union. The US will also continue to impose a 50 percent customs duty on steel and aluminum imports from Europe. Cars will continue to be subject to a 15 percent tariff under separate sector regulations. EU Trade Commissioner Maros Sefcovic held several meetings with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnik to discuss the implications of the court decision. EU ambassadors were informed about these meetings earlier in the week. According to individuals close to the matter, despite the existing uncertainty, both the European Commission and member states want to adhere to the EU-US agreement negotiated last summer. Greer, however, stated that full compliance with the agreement by the US would take some time. In a statement to Bloomberg, Greer said, "We will need a few months to ensure that we are readjusting tariffs in line with our commitments in the agreement. We also expect the EU and the United Kingdom to fulfill their obligations."