US Tariffs Trigger EU Alarm: Trade War Looms?
Brussels – The European Union is grappling with uncertainty following the US Supreme Court’s decision regarding tariffs imposed by President Donald Trump, coupled with Trump’s subsequent threats of new tariffs. The court ruling, which deemed Trump’s unilateral tariffs unlawful, has ironically opened the door to further trade tensions, prompting the EU to prepare for potential retaliation.
Diplomatic Efforts and Rising Irritation
EU Commissioner for Trade, Maros Sefcovic, has been in direct communication with US Trade Secretary Howard Lutnick and US Trade Representative Jamieson Greer, seeking clarity amidst the escalating situation. However, the Commission has issued a strongly worded statement expressing “irritation” and warning of a potential trade conflict.
“An agreement is an agreement,” the EU executive declared. “As a principal trading partner of the United States, the EU expects the US to respect the commitments established in the Joint Declaration, as the EU respects its own commitments.” The EU insists that EU products must continue to benefit from competitive treatment without exceeding the previously agreed-upon 15% tariff cap.
Retaliation on the Table: Counter-Duties and Anti-Coercion
The EU has a list of ‘Made in USA’ products worth up to €93 billion ready to be hit with counter-duties. This list, initially developed when a deal seemed unattainable, was put on hold after the agreement for a 15% tariff regime was reached. The Commission is now signaling its willingness to reactivate it.
Beyond counter-duties, the EU could invoke its anti-coercion instrument, allowing for restrictions on exports, duties on services, or the exclusion of foreign companies from public procurement. US technology companies could be particularly vulnerable under this instrument.
European Parliament Raises Concerns
Bernd Lange, President of the European Parliament’s International Trade Committee, announced plans to put the EU-US tariff agreement on hold until the US clarifies its intentions. He described the situation as “pure tariff chaos” and expressed growing uncertainty for the EU and other US trading partners.
Clarity and legal certainty are needed before any further steps are taken.
At our extra meeting tomorrow, I will therefore propose to the EP-negotiating team putting legislative work on hold until we have a proper legal assessment and clear commitments from the US side. (3/3)— Bernd Lange (@berndlange) February 22, 2026
A special meeting of the committee has been convened to discuss the implications of the Supreme Court ruling and the potential for further action.
US Assurances Meet with Skepticism
US Trade Representative Jamieson Greer stated that the White House intends to “support” existing trade agreements, including the 15% tariff deal with the EU. However, the EU remains cautious and is preparing for all possible scenarios.
What Does This Mean for Global Trade?
The current situation highlights the fragility of international trade agreements and the potential for disruption caused by unilateral actions. The EU’s response underscores its commitment to defending its economic interests and upholding the principles of fair trade. The outcome of this dispute will likely set a precedent for future trade negotiations and could have far-reaching consequences for the global economy.
Pro Tip:
Businesses engaged in transatlantic trade should closely monitor developments and assess their potential exposure to tariffs and counter-duties. Diversifying supply chains and exploring alternative markets may be prudent strategies to mitigate risk.
FAQ
- What did the US Supreme Court rule? The Court ruled that the President does not have the authority to decide on fiscal matters, including tariffs, deeming Trump’s tariffs unlawful.
- What is the EU’s position? The EU expects the US to honor existing trade commitments and is prepared to retaliate if necessary.
- What counter-duties is the EU considering? The EU has a list of US products worth up to €93 billion that could be subject to counter-duties.
- What is the anti-coercion instrument? It allows the EU to impose restrictions on exports, duties on services, or exclude foreign companies from public procurement.
Stay informed: Explore our other articles on international trade and economic policy for further insights.
