EU Warns That Trump’s New Tariff Policy Breaks Trade Deal

Jorge Valero and Alberto Nardelli

Tue, February 24, 2026 at 5:27 PM GMT+9 3 min read

Photographer: Maria Feck/Bloomberg

(Bloomberg) – 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 use 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% but hadn’t yet implemented as of Tuesday.

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The European Commission, which handles trade matters for the bloc, told lawmakers 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% level, according to people familiar with the commission’s assessment. The new global tariffs can stay in place for five months.

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 removing 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 suspended 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 weekend and delivered a report to European lawmakers and a group of EU ambassadors Monday.

Sefcovic told 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, said the people, who spoke on the condition of anonymity.

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Both sides have indicated they want to uphold the accord but it’s still unclear how they will be able to do this — and how quickly, some of the people said.

Adding to the uncertainty, the Trump administration is preparing a separate spate of tariffs under Section 232 of the Trade Expansion Act based on national security concerns. The US will investigate the the impact of imports on batteries, cast iron and iron fittings, electrical grid equipment, telecom equipment, plastics and plastic piping, and industrial chemicals, Bloomberg reported earlier.

The administration has indicated that they’ll find other import taxes to take the place of the global 10% levy — which expires after five months — to replace the levies struck down by the courts.

“When we agreed to this trade deal, one of the arguments was that our companies would have stability,” Kaja Kallas, the EU’s foreign policy chief, said in an interview with Bloomberg. “Predictability is a value and it is again gone.”

(Updates with Kaja Kallas comment in the final paragraph.)

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