GEOPOLITICS | Trump's New Tariff Plan to Impact EU Exports

U.S. President Donald Trump's latest tariff plan is set to impose higher duties on approximately €4.2 billion worth of European Union exports, exceeding the 15% cap agreed upon in the EU-U.S. trade agreement. According to Jin10, sources familiar with the EU's tariff assessment revealed that the new policy will raise tariffs on European exports such as cheese, butter, certain agricultural products, and various plastic, textile, and chemical goods beyond the permissible maximum level. Some other goods, including certain spirits, will face tariffs below 15%. When asked about Trump's latest tariffs, EU Commission spokesperson Olof Gill reiterated that "EU products must continue to enjoy the most competitive treatment and should not face tariff increases beyond the clearly defined and comprehensive limits previously agreed upon." He added that under the new tariff regime, about 7% of EU exports will exceed the 15% maximum limit. EU Trade Commissioner Maroš Šefčovič has engaged in multiple discussions with U.S. Trade Representative Robert Lighthizer and Commerce Secretary Wilbur Ross to address the implications of the Supreme Court ruling. Lighthizer indicated that the U.S. requires additional time to comply with the agreement. "We may need two to three months to ensure we realign the tariffs in a manner consistent with the agreement's commitments," Lighthizer stated on Wednesday.