After the decision of the US Supreme Court, the European Union (EU) has made it clear that it will not tolerate any increase in tariff rates from the US and the Trans-Atlantic Trade Agreement of 2025 should be fully followed. The European Commission said on Sunday (February 22) that the US needs to provide clarity on its future tariff policy so that trade stability between the two sides is maintained.
The US Supreme Court has struck down the sweeping import tariffs imposed by President Donald Trump. The court said in its decision on Friday that Trump had imposed blanket tariffs on most of the trading partner countries, encroaching on his powers under the International Emergency Economic Powers Act (IEEPA). However, soon after the decision, the administration imposed new tariffs under other trade laws.
The European Commission said in strong words that the unprecedented tariffs undermine confidence in trans-Atlantic trade and investment. Under the EU-US trade agreement reached in 2025, US tariffs on European exports were capped at 15%, while many tariffs on US industrial products were removed. The Commission bluntly said that a deal is a deal and stressed that any rate above the agreed limit would not be acceptable.
After the court decision, the Trump administration first imposed a flat fee of about 10% and then increased it to 15%. The White House says the limit is in line with the 2025 agreement, but European officials are concerned about the constantly changing policy.
Trade Commissioner Maros Sefcovic has raised the issue directly with Washington in recent talks. Brussels has indicated that approval of the agreement could be delayed if transparency is not achieved. Some European lawmakers argue that the sudden tariff change undermines the legal and economic foundations of the agreement.
This decision has also affected global markets. The US dollar saw a decline, while gold prices rose. Analysts believe the Supreme Court’s decision may give trading partners some leverage in negotiations, but it is unclear which tariffs will ultimately remain in place and for how long.
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