The ruling by the United States supreme court that president Donald Trump’s sweeping tariffs were illegal will not unravel deals done with trading partners like the European Union, according to the US trade representative Jamieson Greer.
His remarks come amid huge uncertainty over trade deals with the US as Trump responded angrily to the court’s decision. He initially announced a new 10 per cent across-the-board tariff and then on Saturday said he would raise this temporary tariff to 15 per cent.
It has been unclear what this would mean for the trade deal agreed between the US and EU struck last August which saw EU states accept 15 per cent tariffs on future trade with the US.
The US struck trade deals with the EU, China and others since Trump’s so-called “liberation day” tariffs were first announced last April.
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Greer told CBS’s Face the Nation programme that the deals remain in place as he sought to separate those arrangements from the planned 15 per cent global tariff Trump announced on Saturday.
“We want them to understand these deals are going to be good deals,” Greer said. “We’re going to stand by them. We expect our partners to stand by them.”
He also said he “spoke with my counterpart from the EU this weekend” and would be talking to other key US trading partners to reassure them.
The US supreme court ruled that the law used by the Trump administration to bring in its wide-ranging tariffs – the International Emergency Economic Powers Act – does not authorise the president to impose tariffs.
The court ruling does not strike down separate tariffs Trump imposed on specific sectors – the automobile, steel, aluminium and timber industries – on national security grounds, following what are known as section 232 investigations.
The Trump administration had instigated section 232 investigations into the pharmaceutical and semiconductor sectors, but did not follow through with tariffs.
There is concern within the pharma industry in Ireland that the court decision may turn Trump’s attention to possibly introducing tariffs on pharma imports, via the national security route.
The Irish Times understands that hope within the Irish Government is that the deal between the US and EU will be honoured and there will not be any “stacking” of tariffs on top of the 15 per cent previously agreed.
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The Government is monitoring the situation and is engaging with the European Commission which negotiates trade policy for the EU as a whole.
A European Commission statement on Sunday said that it “requests full clarity on the steps the United States intends to take” following the supreme court ruling.
It added that the current situation “is not conducive to delivering ‘fair, balanced, and mutually beneficial’ transatlantic trade and investment, as agreed to by both sides [last August].”
The statement said: “The Commission will always ensure that the interests of the European Union are fully protected. EU companies and exporters must have fair treatment, predictability and legal certainty.
“A deal is a deal. As the United States’ largest trading partner, the EU expects the US to honour its commitments ... just as the EU stands by its commitments.”
It added: “In particular, EU products must continue to benefit from the most competitive treatment, with no increases in tariffs beyond the clear and all-inclusive ceiling previously agreed.”
The commission also said: “When applied unpredictably, tariffs are inherently disruptive, undermining confidence and stability across global markets.”
It said it was in “close and continuous contact with the US administration” and on Saturday EU trade commissioner Maroš Šefčovič spoke with Greer and commerce secretary Howard Lutnick. “We will continue to work towards lowering tariffs, as provided for in the Joint Statement,” the commission said.
Separately, Bernd Lange, chairman of the European Parliament’s trade committee said he will propose suspending legislative work on approving the agreement at an emergency meeting on Monday “until we have a comprehensive legal assessment and clear commitments from the US”.-Additional reporting: Bloomberg
