Volkswacht Bodensee - US told EU it 'stands' by tariff deal: trade chief

After the Supreme Court ruled Friday Trump lacks authority to impose levies under a 1977 law, the US leader responded with fresh tariffs of 10 percent on imported goods -- which Trump has vowed to hike further to 15 percent.

That raised complex questions about what the new duties mean for the EU deal clinched last year with Trump, which set tariffs at 15 percent for most EU goods.

"I have been in constant touch with my counterparts, and they both reassured me they stand by the deal with the European Union," Trade Commissioner Maros Sefcovic told EU lawmakers.

Sefcovic later said he had been "very vocal" about how "difficult" the fresh tariffs announced by Trump would be for the EU during his calls.

But he also acknowledged it was "a transitional period where they are figuring out how to deal with this really landmark court ruling".

The top trade negotiator touched on another sensitive topic in transatlantic ties: Trump's 50 percent duties on steel and aluminium imports, which the EU has been pushing to bring down.

The president expanded levies on the metals in August to include several hundred products which contain steel or aluminium.

Sefcovic suggested there could be some good news for the EU "rather soon".

"I got reassurances from our US colleagues that they know that this is a big problem for us and that they're looking into this matter," he said.

- 'Deal is a deal' -

The bloc's parliament put the EU-US deal on ice Monday as it sought more clarity on the fallout from the Supreme Court ruling, only a day before the committee was due to give its green light.

Sefcovic said he understood the body's decision, but added: "It is imperative we keep the process moving forward in implementing our commitments."

He urged the parliament to approve the deal in March "under the condition, of course, that we get more clarity from the United States".

EU member states' representatives in Brussels heard from the EU executive Monday and a European diplomat said everyone agreed "a deal is a deal".

The EU executive told senior diplomats if imports face a blanket 10-percent levy, pre-existing duties mean some products could end up being taxed at a higher rate than the trade deal's 15 percent.

Another concern is Trump's new flat levy could apply indifferently to the EU and to countries that made fewer trade concessions to Washington -- and were therefore previously taxed at a much higher rate.

"The EU now loses a comparative advantage vis-a-vis other countries, which was what made the deal palatable in the first place," the diplomat told AFP.

W.Huber--VB