Beginning Tuesday, the United States plans to impose a blanket 15 percent import tariff worldwide. This new rate is set to replace the special tariffs that had applied to numerous trading partners, which the Supreme Court in Washington ruled unlawful on Friday. In response to the resulting legal uncertainty, the European Parliament decided on Monday to suspend last year’s trade agreement with the US.
Lawmakers in Brussels voted to pause work on implementing the deal, meaning that several EU tariffs on American industrial goods - which were supposed to be eliminated under the agreement - will remain in place for now.
Following the EU’s move, President Donald Trump warned trading partners not to “play games.” Any country that did so, he wrote on Truth Social, would face “a much higher tariff and worse than what they recently agreed to.” He did not specify whether he was referring to the EU or other countries.
The EU had already been subject to a 15 percent tariff on most goods. However, the US Supreme Court ruling has raised a number of unresolved legal questions, and the US administration has yet to clarify how it plans to proceed. The European Commission has therefore called on Washington to provide further explanation.
Trade experts believe the new 15 percent import duty could be applied on top of existing tariffs that predate Trump’s presidency. If that proves true, the effective tariff rate for the EU would exceed 15 percent - a move that would contradict the trade agreement announced in late July by European Commission President Ursula von der Leyen and Trump.
According to the Swiss-based think tank Global Trade Alert, Germany and the EU would be among the losers under the new arrangement, as overall US import duties on their goods would increase. In contrast, countries such as Brazil, China and India are seen as potential beneficiaries. Allianz Investment Management similarly views China and several nations in the Global South as likely to gain from the shift.
Trump once again criticized the court’s ruling, calling it “ridiculous, foolish and internationally divisive.” After the decision, he sharply attacked the justices personally, a move that critics say further challenged the principle of separation of powers.
The president also reiterated that he does not intend to seek congressional approval for the new tariffs. Under the 1974 Trade Act, which he is invoking, the measures would expire after 150 days unless Congress votes to extend them - meaning the new duties would be in effect until the end of July. Trump, however, insisted on social media that he does not need to return to Congress for authorization, claiming that such approval had already been granted in various forms. He did not elaborate on what he meant.
There is resistance to the tariffs in Congress, including among some Republicans. Recent polls suggest that a majority of Americans do not support the president’s trade policy. With congressional midterm elections approaching in November, the issue is shaping up to be a significant political test for Trump.