The European Union is entering what officials call a "transitional period" in trade ties with the United States after President Donald Trump imposed a new import surcharge that could weaken last year's trade agreement between the two sides.
European Trade Commissioner Maros Sefcovic told lawmakers Tuesday that the new U.S. tariff move creates months of uncertainty. The surcharge, set at 10% for now, may rise to 15% and could stay in place for up to 150 days under U.S. trade law. That timeline gives both sides until July 24 to find a solution, per Reuters.
"Of course, what is now ahead of us, this is the transitional period where they are figuring out how to deal with this really landmark court ruling and we are talking every day," Sefcovic told the European Parliament's trade committee.
He added that U.S. officials believe the issue could be resolved sooner, possibly within "three, four months."
Trump Tariffs and the 150-Day Trade Window
The new surcharge followed a ruling by the Supreme Court of the United States that struck down much of Trump's earlier global tariff policy. In response, the administration turned to a different trade law that allows tariffs of up to 15% for 150 days.
Although Trump said the rate would rise to 15%, U.S. Customs confirmed it began at 10% and applies to nearly all countries unless exempt. A White House official said the administration is preparing a separate order to increase the rate but did not give a timeline.
If the new surcharge overrides the existing trade deal, some zero-tariff exemptions could disappear. The surcharge may also be added on top of normal U.S. duties, known as "most-favoured-nation" tariffs.
An example used by Bloomberg is certain cheeses that already face duties could see total tariffs climb to about 25% once the 10% surcharge is added. Agriculture products, plastics, and other goods may also be affected, according to assessments from the European Commission.
The situation has raised concerns in Brussels that the agreement reached last summer could unravel before it is fully approved.
European Parliament Vote and Deal Uncertainty
The trade deal set a 15% U.S. tariff ceiling for most European goods. In return, the bloc agreed to remove import duties on many American products. The arrangement was seen as a way to prevent a broader trade war and keep economic stability between the two allies.
However, ratification has stalled. Lawmakers recently froze work on approving the agreement after the U.S. court ruling and Trump's new tariff announcement created confusion.
Trade partners around the world are watching closely as Washington considers more sector-specific investigations that could lead to additional tariffs.
For businesses on both sides of the Atlantic, the next few months will be critical. Companies need clear rules to plan shipments, prices, and supply chains. Without clarity, exporters face higher costs and delayed decisions.
In simple terms, the agreement that was meant to bring stability is now under pressure. Whether both sides can protect it during this 150-day window may decide the future of one of the world's largest trade relationships.
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