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    Home » EU rejects new US tariff hikes and demands deal honored
    Business

    EU rejects new US tariff hikes and demands deal honored

    February 25, 2026
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    EuroWire, BRUSSELS: The European Union said it will not accept any increase in U.S. tariffs on EU goods beyond limits set in a bilateral trade framework, after a U.S. Supreme Court ruling struck down an earlier U.S. tariff regime. The European Commission said Washington must provide “full clarity” on the steps it will take following the court decision and stressed that agreed terms must be respected. “A deal is a deal,” the Commission said, adding that EU products must continue to receive the most competitive treatment under the framework.

    EU rejects new US tariff hikes and demands deal honored
    EU demands U.S. clarity as tariff rules change after Supreme Court decision. (AI-generated image)

    The dispute follows the Supreme Court’s Feb. 20 decision that the International Emergency Economic Powers Act does not authorize a U.S. president to impose tariffs. After the ruling, the United States announced a temporary, across-the-board import surcharge, initially set at 10% and then raised to 15%. EU officials said the move created immediate uncertainty over how the new U.S. tariff measure would be applied alongside the existing EU-U.S. framework that set tariff parameters for most EU exports.

    The Commission pointed to the EU-U.S. Joint Statement of August 2025, which set an all-inclusive ceiling for U.S. tariffs on originating EU goods at 15% for most products and provided that certain items would face only standard U.S. most-favored-nation rates. Those product provisions include aircraft and aircraft parts and cork, among others. Under the framework, the EU committed to remove import duties on many U.S. goods and to maintain zero duties for U.S. lobster under an expanded arrangement.

    Contacts and legislative pause

    EU Trade Commissioner Maros Šefčovič told European lawmakers that he has been in contact with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick about the tariff changes. Šefčovič said U.S. counterparts reassured him they stand by last year’s agreement while they work through the implications of the court ruling. He described a period of intensive engagement, with daily discussions between officials, as both sides seek clarity on how the new U.S. measure aligns with the terms spelled out in the joint statement.

    In the European Parliament, the International Trade Committee postponed a planned vote on legislative proposals linked to the agreement, including measures to remove many EU import duties on U.S. goods and to continue zero duties for U.S. lobster. Committee chair Bernd Lange said lawmakers would revisit the issue after the United States provides more clarity on how the temporary tariff measure will be applied and how it relates to the framework already agreed. Lawmakers are set to reconvene on March 4 to review the situation.

    Trade terms and market impact

    The Commission said the current situation is not conducive to delivering the “fair, balanced, and mutually beneficial” transatlantic trade and investment described in the 2025 joint statement, and it warned that tariffs applied unpredictably can disrupt supply chains and undermine confidence across global markets. EU officials have emphasized that the framework was designed to provide predictable treatment for EU exports while defining product-specific provisions, and they have asked the United States to confirm that agreed ceilings and carve-outs will continue to apply as written.

    The EU and the United States are each other’s largest trading partners, and EU statistics show bilateral trade in goods and services totaled about 1.7 trillion euros in 2024. The Commission said it expects the United States to honor its commitments in the joint statement, just as the EU stands by its own, and it reiterated that there must be no tariff increases on EU goods beyond the clear and all-inclusive ceiling previously agreed.

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