US duties at 15%: Europe accuses Trump of violating the agreement and freezes ratification

John

By John

Thirty hours to formulate that clear position requested by several chancelleries. Thirty hours to understand that the time of outstretched hands, of quick trips to Scotland to Donald Trump’s court, is over this time. Europe responded to the United States after yet another breach from the White House and did so, first and foremost, by asking for clarity.

In a long official statement, the expression of the Commission as a whole, Brussels however went further. And he actually accused the American president of not respecting the agreements. We are not at a rift between the United States and the EU on the trade front. Such a prospect is far from reality.

But compared to last summer, something in the Commission’s posture is destined to change. The 15% duties imposed unilaterally by Donald Trump after the Supreme Court rejected the legal premises of his tariff policy not only damage Europe, but – in the first assessments – lead to a violation of the agreement signed in Scotland.

«The current situation is not conducive to the realization of “fair, balanced and mutually beneficial” transatlantic trade and investment, as agreed by both parties in the EU-US joint statement. A deal is a deal. As the main trading partner of the United States, the EU expects the US to honor its commitments,” the Brussels statement read.

A graph released by the Financial Times at the same time illustrated how the EU is among the most disadvantaged recipients of the new tariff scheme, which paradoxically would seem to favor countries certainly not close to Trump, such as China and Brazil. In fact, to the 15% quota, we should add the most favored nation clause which regulated relations between the US and the EU in the past, and which stands at around 4.8%. This clause, in the Trump Turnberry agreements, was included in the 15% cap.

“EU products must continue to benefit from the most competitive treatment, without tariff increases beyond the clear and all-encompassing maximum limit previously agreed,” explained Palazzo Berlaymont. From Washington they tried to calm the waters a bit. Speaking to CBS, American trade representative Jamieson Greer explained that «the agreements remain in force. We count on our partners to respect them.”

On Saturday, EU Trade Commissioner Maros Sefcovic had an initial meeting with Greer and Trade Secretary Howard Lutnick. “The EU’s priority is to preserve a stable and predictable transatlantic trading environment,” reiterated the EU executive. But chaos reigns supreme on the Atlantic. And also for this reason the European Chamber is preparing to once again freeze the approval process of the implementing regulations of the July agreement.

“I will propose to the EP negotiating team to suspend the legislative work until we have an adequate legal assessment and clear commitments from the United States,” announced the president of the EP Trade Committee, and rapporteur of the dossier, Bernd Lange. “No one can understand anything about it anymore” but “the conditions of the Turnberry agreement have changed”, insisted the socialist MEP.

It remains to be seen what the position of the EPP and the Conservatives is, the two groups that have so far always tried to lower tensions with the USA. But Berlin’s position, in these hours, is also quite clear. The leader of the Popolari, Mandred Weber, will have to adapt in some way.

The tariff dossier is also destined to emerge in the meeting of EU foreign ministers scheduled for the next few hours and which will see the participation of Antonio Tajani. The head of the Farnesina, again on Monday, will participate in the G7 Trade and in the early afternoon he will chair the meeting of the task force on duties. At Palazzo Berlaymont, meanwhile, the team order is “unity”.

Competence over trade policy is exclusive to the Commission but, this time, Ursula von der Leyen has less room for manoeuvre. And a divided Europe would make its negotiating position very weak.

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