EU says U.S. breached trade deal as new tariffs take effect
Feb 24th 2026
A top EU trade lawmaker told CNBC the United States has violated their trade agreement after Washington imposed universal import levies, prompting the EU to pause ratification and consider reprisals.
- European Parliament trade chair Bernd Lange said the U.S. has broken the trade deal several times and asked for clarity and certainty for the next three years.
- President Trump announced a universal 10% tariff that took effect early Tuesday and said it would rise to 15% at an unclear later date.
- The U.S. Supreme Court struck down Trump era reciprocal tariffs, after which the president announced fresh levies including the universal tariff.
- The European Parliament paused work on ratifying the U.S.-EU trade deal while it seeks confirmation from the White House that the agreement still stands.
- The original deal included a baseline 15% tariff for many EU goods with exemptions and a 50% rate for steel, aluminum and related derivative products.
- EU officials say some tariff moves have already raised derivative product rates from 15% to 50%, which Lange said harms small and medium sized enterprises in Europe.
- The EU has the Anti-Coercion Instrument on the table as a potential retaliatory tool, though some member states are reluctant to use it and it has never been deployed before.