EU Demands Clarity on Trump's 15% Global Tariff: 'A Deal is a Deal' | Trade Update

What is the EU-US Trade Dispute About?

The European Union has demanded immediate clarification from the United States regarding President Donald Trump's new 15% global import tariff, insisting that "a deal is a deal" and that Washington must honor the bilateral trade agreement signed in July 2025. This confrontation represents the latest chapter in the ongoing transatlantic trade tensions that have characterized Trump's presidency, creating uncertainty for the world's largest bilateral trade relationship worth over €1.6 trillion annually.

Background: Supreme Court Ruling and New Tariff Authority

The current dispute stems from a landmark U.S. Supreme Court decision on February 20, 2026, which invalidated Trump's previous tariff authority under the International Emergency Economic Powers Act (IEEPA). In a 6-3 ruling, the court declared that the IEEPA "does not authorize the President to impose tariffs," striking down approximately $175 billion in emergency duties. Within hours of the ruling, Trump announced a new 10% global surcharge, which he increased to 15% the following day using Section 122 of the Trade Act of 1974.

Section 122 allows the president to impose tariffs of up to 15% for up to 150 days in response to "large and serious" balance-of-payments deficits. This temporary measure requires only presidential determination and must be applied uniformly across all trading partners. However, it cannot be extended beyond 150 days without congressional approval, creating a limited window for the policy to remain in effect.

The 2025 EU-US Trade Agreement: Key Provisions

What Was Agreed?

The July 2025 trade deal between the EU and US established a comprehensive framework for transatlantic commerce. Key elements included:

• A 15% tariff ceiling for most EU exports to the US, including automobiles, semiconductors, pharmaceuticals, and lumber
• Zero or near-zero tariffs for specific product groups like aircraft parts and generic pharmaceuticals
• Elimination of all EU tariffs on US industrial goods
• Protections for steel and aluminum sectors against unfair competition
• Reduction of non-tariff barriers through regulatory cooperation
• Commitments on digital trade and economic security

The agreement was hailed as restoring stability after years of trade tensions, with European Commission President Ursula von der Leyen stating it would "safeguard jobs and protect key industries" on both sides of the Atlantic.

EU Response and Demands

Stronger Language, Clearer Demands

The European Commission's initial response on Friday was measured, stating only that it was studying the Supreme Court ruling's consequences and maintaining contact with US officials. However, by Saturday, the tone had shifted dramatically. European Trade Commissioner Maros Sefcovic held urgent discussions with US trade representative Jamieson Greer, after which the Commission issued a much stronger statement.

"A deal is a deal," declared the European Commission in its official statement. "As the largest trading partner of the United States, the EU expects the US to honor its commitments, just as the EU honors its own commitments."

The Commission emphasized that unpredictable tariffs disrupt global markets and undermine business confidence, demanding "full clarity" on Washington's intentions. This reflects growing concern that the new 15% global tariff could undermine the carefully negotiated terms of the 2025 agreement, despite similar headline rates.

Political Implications in Europe

European Parliament's Role

The uncertainty has significant political consequences within the EU. The European Parliament, which must still ratify the 2025 trade agreement, is likely to delay its scheduled Tuesday vote until clarity emerges about Trump's intentions. As EU correspondent Ardy Stemerding noted, "All the uncertainty about the tariffs means the European Parliament will probably put the brakes on when it comes to the earlier trade deal."

This parliamentary hesitation reflects broader European concerns about the reliability of US trade commitments under the current administration. The situation echoes previous trade tensions that have characterized the US-China trade war dynamics, where sudden policy shifts created global economic uncertainty.

Legal and Economic Implications

Section 122's Limitations

The legal basis for Trump's new tariff presents both opportunities and constraints. While Section 122 provides immediate authority, its 150-day limit creates a temporary measure that businesses must navigate. Additionally, the requirement for uniform application means the US cannot target specific countries, potentially affecting all trading partners equally.

Economically, the situation creates uncertainty for European businesses that had begun planning based on the 2025 agreement's stability. The automotive, pharmaceutical, and technology sectors—all major components of EU-US trade—face particular uncertainty. This comes at a time when global supply chains are already adapting to new digital trade regulations and shifting geopolitical realities.

What Happens Next?

The immediate focus will be on diplomatic discussions between EU and US officials. Several key developments to watch include:

1. Clarification from Washington: The EU demands specific details about how the new 15% tariff interacts with the 2025 agreement
2. European Parliament action: Whether ratification proceeds or faces indefinite delay
3. Legal challenges: Potential court cases challenging the Section 122 authority
4. Business adaptation: How companies adjust to renewed uncertainty

The situation represents a critical test for transatlantic relations and the stability of international trade frameworks. As the world's two largest economies navigate this latest challenge, the outcome will have implications far beyond their bilateral relationship, affecting global economic stability and the rules-based international trading system.

FAQ: EU-US Tariff Dispute Explained

What is Section 122 of the Trade Act of 1974?

Section 122 allows the US president to impose tariffs of up to 15% for 150 days to address balance-of-payments deficits, requiring only presidential determination but congressional approval for extension.

How does Trump's new 15% tariff differ from the 2025 EU-US agreement?

While both involve 15% rates, the 2025 agreement includes specific exemptions, sectoral protections, and long-term stability that the temporary Section 122 measure lacks.

What did the Supreme Court rule on February 20, 2026?

The Court invalidated Trump's previous tariff authority under the International Emergency Economic Powers Act, striking down approximately $175 billion in emergency duties.

Why is the European Parliament delaying ratification?

Parliamentarians want clarity on whether the US will honor the 2025 agreement before committing the EU to its terms, reflecting concerns about reliability and predictability.

How long can the 15% tariff remain in effect?

The Section 122 authority lasts 150 days (approximately 5 months) unless Congress votes to extend it, creating a temporary measure with uncertain longevity.

Sources

European Commission: EU-US Trade Deal
New York Times: Supreme Court Tariff Ruling
TariffCheck: Legal Analysis
White House: 2025 Trade Deal Fact Sheet