EU Demands U.S. Honor Tariff Pact Amid Rising Tensions
The European Union has demanded that the United States respect their joint tariff agreement, following President Donald Trump's threat to increase levies on European automobiles. The bloc's trade chief, Maros Sefcovic, conveyed this message to his U.S. counterpart, Jamieson Greer, during talks in Paris on Tuesday.
The agreement, struck in July 2025, set tariffs on most EU goods at 15 percent. However, Trump has vowed to raise duties on cars and trucks to 25 percent, citing delays in the EU's ratification process.
EU Calls for Swift Return to Agreed Terms
An EU spokesperson stated that Sefcovic urged a swift return to the terms agreed upon at Turnberry, which include a 15 percent all-inclusive tariff rate. The meeting took place on the sidelines of a G7 trade ministers' meeting in Paris and lasted approximately 1.5 hours.
The European Parliament has given conditional approval to the trade pact, but a final version still requires agreement with the bloc's member states. This has caused frustration in Washington, with Greer complaining about a very slow EU approval process and amendments that would limit the deal.
U.S. Position: Non-Implementation if EU Doesn't Act
Greer stated on Monday, "The president decided that if the Europeans aren't implementing the deal right now, then we don't have to implement all of it either at this time." This reflects the U.S. stance that the EU's slow progress justifies partial non-compliance.
EU negotiators from the parliament and capitals are scheduled to meet Wednesday, but officials cautioned against expecting a final agreement. The European Commission, which leads trade policy for the 27-nation EU, has made clear it is keeping its options open should Trump's new car tariffs take effect, without speculating on specific actions.
EU Leaders Reject Trump's Charges
European Commission President Ursula von der Leyen declared that the bloc is prepared for every scenario, rejecting Trump's accusation that the EU is failing to comply with the trade accord. "A deal is a deal, and we have a deal," she told reporters in Yerevan on Tuesday. "We are both implementing this deal while respecting the different democratic procedures we have on both sides."
French President Emmanuel Macron, also in Armenia on a state visit, called for the EU to be ready to activate its powerful anti-coercion instrument (ACI) if Trump follows through on his car tariff threat. Slamming the U.S. president for brandishing threats of destabilization, Macron said the EU had equipped itself with instruments that would need to be activated precisely for such scenarios.
France Pushes for Strong EU Response
Key EU power France has repeatedly pressed for the bloc to unleash the ACI trade tool if Trump makes good on successive trade threats. The EU has never deployed this instrument, which is designed to dissuade countries from exerting geopolitical pressure on the bloc.
The standoff underscores the fragile state of transatlantic trade relations, with both sides signaling readiness for escalation. The EU remains committed to the deal but warns that it will not hesitate to defend its interests if the U.S. imposes higher tariffs.
