US-EU trade deal faces collapse as Borrell demands suspension over 'illegal' surcharge
The long-stalled US-EU trade agreement has faced fresh criticism from former EU foreign policy chief Josep Borrell. He called the deal unfair and demanded its suspension, citing a 15% surcharge he claims is illegal. The dispute comes as the Biden administration has kept many protectionist trade policies in place, despite ongoing talks on specific sectors.
Legal challenges have further complicated matters. The US Supreme Court recently ruled that presidents cannot impose import tariffs under emergency powers, confirming Congress alone holds that authority.
Tensions over the trade deal began years earlier. In 2019, the European Parliament froze ratification after then-President Donald Trump threatened tariffs on European allies. His administration had pressured countries opposing Greenland's potential incorporation into the US, sparking backlash.
The Biden White House later maintained a tough stance on trade. Between 2024 and 2025, it defended tariffs on EU goods, despite criticism from Borrell. While negotiations continued on issues like steel and aluminium, no broad rollback of barriers occurred. Instead, officials stressed a 'worker-first' approach rather than sweeping reforms. Borrell has repeatedly condemned the agreement as one-sided. He argues it favours Washington, particularly given its national security strategy and past threats against Spain and Greenland. His latest remarks target the 15% surcharge, which he insists violates trade rules. The Supreme Court's decision adds another layer to the dispute. By limiting presidential power over tariffs, the ruling removes a key tool used in past trade conflicts. Congress must now take the lead on any future import restrictions, potentially reshaping US-EU negotiations.
The trade deal remains in limbo as legal and political hurdles persist. Borrell's calls for suspension reflect broader EU frustration with US policies. With Congress now controlling tariff authority, future talks may shift direction—but no immediate resolution is in sight.
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