(US, 23rd) The European Commission has demanded that the United States abide by the terms of last year's EU-US trade agreement and refuses to accept the US tariff increase.
According to Reuters, the US Supreme Court ruled that President Trump overstepped presidential authority and acted unconstitutionally by invoking the 1977 International Emergency Economic Powers Act (IEEPA) to impose tariffs on US trade partners in April last year. In response, Trump immediately applied a uniform 15% tariff on global imports for 150 days.
The European Commission, which negotiates with the US on behalf of 27 EU member states, issued a statement on Sunday (February 22), stating that Washington must provide “adequate and clear explanation” regarding the measures it intends to take following the US Supreme Court ruling.
The European Commission said, “The current situation is not conducive to achieving ‘fair, balanced, and mutually beneficial’ transatlantic trade and investment, which runs counter to the clauses agreed upon in the joint statement of last year's trade agreement.”
The European Commission said, “The current situation is not conducive to achieving ‘fair, balanced, and mutually beneficial’ transatlantic trade and investment, which runs counter to the clauses agreed upon in the joint statement of last year's trade agreement.”
“Words must be fulfilled. Especially important is that EU products must continue to enjoy the most competitive treatment, and tariffs must not exceed the clearly defined and comprehensive upper limits previously agreed.”
The European Commission also stated that unpredictable tariffs disrupt market order and undermine global market confidence.
The European Commission said that EU Trade Commissioner Sefcovic had discussed this issue with US Trade Representative Greer and Commerce Secretary Lutnik on the 21st.
The European Commission also stated that unpredictable tariffs disrupt market order and undermine global market confidence.
The European Commission said that EU Trade Commissioner Sefcovic had discussed this issue with US Trade Representative Greer and Commerce Secretary Lutnik on the 21st.
The statement issued by the European Commission on Sunday is much tougher than its initial response released the day of the US Supreme Court ruling. On the 20th, the European Commission only said that it was studying the outcome of the US Supreme Court’s decision and was maintaining communication with the US government.
On the 22nd, Greer, in interviews with several US media outlets, defended Trump’s tough trade policies and stressed that the agreements the United States reached with China, the EU, Japan, South Korea, and other trade partners remained effective. He attempted to distinguish these agreements from the 15% global tariff Trump announced on the 21st.
Greer said, “We hope they understand that these agreements are valid. We will keep our promises, and we also hope our partners will keep theirs.”
After the Supreme Court ruling on the 20th, Trump immediately announced the invocation of Article 122 of the 1974 Trade Act to impose a new 10% global tariff, effective February 24th; on the 21st, he further announced an increase of the rate to the 15% ceiling allowed by Article 122, which took effect immediately. Trump also ordered the Office of the Trade Representative to launch an investigation into “unfair trade practices” under Section 301 of the 1974 Trade Act, seeking additional tariffs on specific trade partners and sectors.