EU Trade Commissioner: The United States has assured that it will fulfill the US-EU trade agreement reached last year

On Thursday, March 5th, European Union Trade and Economic Security Commissioner Shefchovich stated that after receiving assurances from the United States, he believes the U.S. will honor the trade agreement signed with the EU last year.

“I believe the U.S. will fulfill this agreement because that is the guarantee I received from my American counterparts,” he said.

Following the U.S. Supreme Court’s decision last month to overturn most of President Trump’s tariffs, he signed an executive order imposing a 10% tariff on imported goods. However, U.S. Treasury Secretary Bostant said Wednesday that the tariff rate could be further increased to 15% later this week.

In early April 2025, Trump introduced the so-called “reciprocal tariffs,” sharply raising tariffs on nearly all trading partners, citing the 1977 International Economic Emergency Powers Act (IEEPA) as legal basis. But on February 20, the U.S. Supreme Court ruled that Trump’s actions were unconstitutional.

Trump did not accept the ruling and subsequently announced that, under Section 122 of the Trade Act of 1974, a new 10% tariff would be imposed globally for 150 days.

Last July, Trump reached a trade agreement with European Commission President von der Leyen. Under the agreement, most EU exports to the U.S. would be subject to a 15% tariff, while the EU would remove tariffs on various American goods.

However, unlike the tariff arrangements in the EU-U.S. trade agreement, the additional tariffs imposed by Trump are levied on top of the Most Favored Nation (MFN) rates, meaning some EU exports could face higher tariffs than before.

On Thursday, Shefchovich signed an agreement with Canadian Trade Minister Sidhu to expand trade relations and simplify trade rules within the existing framework. Currently, many countries worldwide are working to increase trade with nations and regions outside the U.S.

Canada and Europe are both seeking to reduce dependence on the U.S. market. The U.S. is Canada’s largest trading partner, accounting for nearly 70% of its exports, making Canada particularly vulnerable to changes in U.S. trade policy.

Canadian Prime Minister Kenny has set a goal to double Canada’s trade outside the U.S. over the next decade.

Sidhu said, “This is not just an economic goal but a strategic one, aimed at reducing vulnerabilities, protecting Canadian workers from shocks beyond our control, and building long-term resilience. Europe is an important partner in achieving this ambitious goal.”

He also stated that negotiations between Canada and the EU on digital trade—Canada’s first such agreement—are expected to be completed within this year.

(Source: Caixin)