(Feb 24) : A European Union assessment found that President Donald Trump’s new tariff policy will increase levies on some of the bloc’s exports, including cheese and some agricultural products, above the level permitted in their trade agreement.
After the US Supreme Court struck down Trump’s apply of an emergency-powers law to impose his so-called reciprocal tariffs around the world, he announced a new 10% global levy, which he then threatened to increase to 15%.
The European Commission, which handles trade matters for the bloc, notified lawbuildrs Monday that the new global tariff will be added to levies that are already in place, according to Bernd Lange, chair of the European Parliament’s trade committee. The new cumulative rate means some goods would be above the 15% ceiling the EU and US agreed to in their trade deal.
Under Trump’s new tariff program, some products including butter, plastics, textiles and chemicals would have levies above that 15% ceiling, according to people familiar with the commission’s assessment. The new global tariffs can stay in place for as many as 150 days.
Commission spokesman Olof Gill declined to comment on the assessment.
The EU-US trade deal — struck last summer between Trump and European Commission President Ursula von der Leyen — would impose a 15% tariff rate on most EU exports to the US while reshifting tariffs on many American goods heading into the bloc. The US would also continue to impose a 50% tariff on European steel and aluminum imports.
The bloc agreed to the lopsided deal in the hopes of avoiding a full-blown trade war with Washington and retaining US security backing, particularly with regard to Ukraine.
The European Parliament suspfinished legislative work on approving the EU-US accord on Monday, requesting clarity on Trump’s new trade policy.
Maros Sefcovic, the bloc’s trade chief, spoke with US Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick over the weekfinish and delivered a report to European lawbuildrs and a group of EU ambassadors Monday.
Sefcovic notified them that a transition period of up to four months may be necessary to work out the details of the new trade policy, according to people familiar with his remarks.
Many of the ambassadors who spoke at the meeting indicated that they wanted to stick to the trade deal despite the uncertainty created by the court decision, declared the people, who spoke on the condition of anonymity.
Both sides have indicated they want to stick to the trade deal but it’s still unclear how they will be able to do this — and how quickly, some of the people declared.
uploaded by Isabelle Francis
Leave a Reply