The European Union is reassessing its trade position after the United States introduced a new across the board import surcharge, replacing global tariffs that were struck down by the US Supreme Court. The move has reopened debate over whether the bloc is now worse off than under the trade framework agreed last year between Washington and Brussels.
The earlier agreement, informally known as the Turnberry deal, established a 15 percent US tariff on most EU exports, while allowing certain products to face standard most favoured nation rates if those were higher. Steel and aluminium remained subject to elevated duties, while limited categories such as aircraft parts, pharmaceuticals and specific natural resources were exempt from additional tariffs. Washington also reduced tariffs on EU car imports from 25 percent to 15 percent under that arrangement.
The Supreme Court ruled that the previous 15 percent global tariff exceeded presidential authority under the 1977 International Emergency Economic Powers Act. In response, the administration implemented a 10 percent import surcharge, with plans to increase it to 15 percent. Unlike the earlier tariff structure, the surcharge is applied on top of existing most favoured nation duties rather than replacing them.
This distinction is central to the EU’s concern. For many industrial goods, the average US most favoured nation tariff is around 3.4 percent. Adding a 10 percent surcharge would result in combined duties below the previous 15 percent ceiling for a large share of exports. However, if the surcharge rises to 15 percent, total tariffs for many products would exceed levels set under the Turnberry agreement.
Certain EU sectors face immediate pressure. Around 7 percent of EU exports to the United States are subject to most favoured nation duties above 5 percent. In those cases, the additional surcharge could significantly increase total tariff burdens. Products most exposed include textiles, clothing and footwear, where existing duties are already high. Some footwear categories carry rates approaching 48 percent, meaning the surcharge materially raises final costs.
Agricultural goods are also affected. Several dairy products, including Edam, Parmesan and Roquefort cheeses, face elevated baseline duties. Fruit and vegetable exports such as melons, strawberries and Brussels sprouts also encounter higher tariffs under the revised structure. EU goods exports to the United States totalled more than 536 billion euros in 2024, underscoring the scale of potential impact.
The surcharge does not apply to certain categories, including critical minerals, pharmaceuticals, selected electronics, beef, tomatoes and products already subject to national security tariffs. Car and steel tariffs remain unchanged from prior arrangements.
Currency markets are closely monitoring the dispute. A stronger US dollar could amplify pressure on European exporters already contending with higher trade barriers. For policymakers in Brussels, the issue now centers on whether the surcharge is temporary or signals a broader shift in US trade policy, with implications for transatlantic investment flows and global supply chains.
