The European Parliament has formally put the implementation of the customs agreement between the USA and the EU on hold.
The background is the tariffs newly announced by US President Donald Trump, as the chairman of the Trade Committee, Bernd Lange (SPD), announced. “We want clear assurances from the United States that they will comply with the agreement, because that is the crucial element,” Lange told the committee. The decision has no legal impact on currently applicable customs duties.
After a decision by the US Supreme Court against his tariff policy, Trump announced a global tariff on imports to the US of 10 percent on Friday and increased it to 15 percent on Saturday.
EU Commission President Ursula von der Leyen and Trump agreed last summer that a maximum tariff should not be exceeded for most EU imports to the USA. The legally binding agreement subsequently drawn up with the USA still has to be approved by the EU Parliament.
The implementation of the agreement was initiated by the EU Commission months ago, but the consent of Parliament and the member states to the relevant regulations is required for implementation. Lange announced a meeting of parliamentarians to vote next week.
Already paused in the Greenland conflict
The MPs had already temporarily suspended preparations for implementation in January after US President Trump threatened extra tariffs in the Greenland conflict. The agreement provides for duty-free imports of US industrial goods. In return, the USA committed last summer to limit tariffs on most EU imports to a maximum of 15 percent. As a result, customs duties on cars were reduced.
Defeat for Trump in court
In a historic ruling on Friday, the Supreme Court banned the US President from imposing tariffs on imports of goods from many countries, citing a 1977 emergency law (IEEPA). Aggressive tariff policy is a core element of Trump’s second term. He announced that he would use other means to continue enforcing his tariffs.
Trump is now citing a 1974 trade law. This allows, under certain conditions, tariffs to be levied on imports for up to 150 days. Experts already doubt that these have been met. In order to impose tariffs for a longer period of time, Trump would definitely need the approval of the US Parliament.
The Supreme Court did not rule on tariffs in general, but only on whether Trump’s argument with the emergency law was legal or not. Now it is clear: he has exceeded his authority.
