European Parliament Threatens to Suspend Customs Agreement with Washington After Trump’s Recent Decisions
The European Parliament is moving toward suspending implementation of the customs agreement concluded with the United States in response to US President Donald Trump’s recent decisions to impose new global tariffs. This comes despite the judicial defeat suffered by Trump’s tariff policy before the US Supreme Court, but the American administration hastened to replace the abolished tariffs with higher comprehensive duties, raising European concerns about violating existing agreements and destabilizing global trade.
Background of Trade Tensions
European Commission President Ursula von der Leyen and President Trump concluded an agreement last summer (2023) stipulating that tariffs on most European imports to the United States would not exceed 15%. However, Trump, relying on the International Emergency Economic Powers Act (IEEPA) and the Trade Act of 1974, had earlier imposed tariffs on US trading partners. The US Supreme Court invalidated these tariffs by a majority ruling, deeming them an overreach of authority.
New American Measures and European Response
In response to the court’s annulment, Trump announced last Friday the imposition of new global tariffs at 10%, then declared on Saturday their increase to 15%. These tariffs are scheduled to take effect next Tuesday, remaining in force for only 150 days before requiring additional congressional approval. Economic expert Lange considers this move “a blatant breach” of the European-American agreement, noting they will be imposed atop baseline tariffs registered with the World Trade Organization, raising the total customs burden to about 25% on some goods.
Immediate Financial Impacts
US tariff revenues surged dramatically by over 275% last month, reaching 30 billion USD. US Treasury Department data show significant revenue growth: from 6.6 billion USD in March to 23.9 billion USD in May, totaling 124 billion USD since the start of the current fiscal year (2025)—a nearly 300% increase compared to the same period last year. Revenues for fiscal year 2026, ending September 30, 2025, are projected to reach approximately 38.2 billion USD, surpassing last year’s pace.
Legal and Economic Questions
Wide debate surrounds the legality and implications of recent American decisions. While the US administration argues tariff revenues could fund reduction of the 38 trillion USD national debt or finance 2000 USD “dividend checks” for citizens, analysts warn of risks including increased consumer prices and intensified global trade wars.
Confrontation Scenarios
Analyst Yark indicates international responses will be multi-layered. He expects European nations to employ deterrent legal tools like competition and antitrust laws against American measures, describing these mechanisms as “strong and effective.” Statements by European officials reflect reservations about customs cooperation, as a Fox News source clarifies: “No one knows if the United States is even capable of abiding by agreements.” Scritna from Sky News Arabia confirms “any step beginning at a certain percentage may rapidly expand, increasing market uncertainty,” urging “clarity and legal certainty before additional steps.”
Aggravated Trade Landscape
The recent American escalation has created a confidence crisis with trade partners, particularly the European Union, which now threatens to suspend a strategic customs agreement. As the US administration continues using economic emergency tools to enforce temporary tariff policies, major legal and economic challenges emerge: from the legality of imposing new tariffs without congressional approval after 150 days, to potential demands by affected nations for recovery of billions in collected tariffs, to inflationary repercussions on the global economy. Markets remain watchful to determine whether these measures will ignite a broader trade war or merely constitute a fleeting negotiating maneuver.
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