EU loses patience following Trump’s latest tariff threat

 

EU loses patience following Trump’s latest tariff threat

The European Union is signaling a major shift toward confrontation following President Donald Trump’s latest global tariff threats. This escalation comes as a direct response to new 10% and 15% tariffs set to take effect on Tuesday, February 24, 2026.

 

Key Developments

Trade Deal Frozen: Bernd Lange, chair of the European Parliament’s trade committee, has proposed an immediate suspension of the Turnberry Agreement ratification. This deal, which was intended to remove tariffs on U.S. industrial goods and lobsters, is now considered by EU officials to be in "clear breach" due to the new U.S. measures.

Demands for Clarity: The European Commission has demanded "full clarity" from Washington, citing a breakdown in the legal basis for current trade negotiations.

Legal Uncertainty: Following a U.S. Supreme Court ruling on February 20, 2026, which declared some of Trump's "reciprocal" tariffs partially illegal, Trump retaliated by introducing new global tariffs. The EU argues these new moves create "pure tariff chaos" and violate previous handshakes.

The EU's "Trade Bazooka"

European leaders, including French President Emmanuel Macron and German Chancellor Friedrich Merz, have signaled they are prepared to activate the Anti-Coercion Instrument (colloquially the "trade bazooka"). Possible countermeasures include:

Suspending U.S. company licenses within the EU.

Taxing U.S. services and digital platforms.

Retaliatory tariffs on approximately €93 billion worth of U.S. exports.

Context of the Conflict

The tension was already high after Trump threatened up to 35% tariffs on European countries that opposed his ambitions regarding Greenland earlier in the year. While the U.S. administration claims the EU failed to meet its commitments to purchase American agricultural and energy products, EU leaders maintain they have upheld their end of previous agreements.