Responding to the EU-US trade agreement reached yesterday, the S&D Group warns that while a 15% tariff is an improvement on 30%, it remains an unjustified and illegal tax on European consumers and businesses. While it would bring some welcome relief and predictability to European industries, the broader agreement seems imbalanced. The S&Ds call for clearer benefits, including lower tariffs on steel and pharmaceuticals, and a broader list of tariff-free products. 

Kathleen van Brempt, S&D vice-president and spokesperson on international trade, stated: 

“Trump is waging an illegal tariff war, and that does not end with this deal. This undermines rules-based trade and poses challenges to Europe’s strategic autonomy. And with the US administration and the European Commission seemingly still at odds over key issues like pharmaceuticals and steel, there’s little clarity on how stable and final this agreement is.

“There’s a lot of room for improvement. We need clearer benefits for European industry, starting with tariff relief on steel and pharma, and expanding the number of sectors included in the zero-for-zero tariff list. Any bad deal should go back to the drawing board.” 

Brando Benifei, S&D coordinator in the international trade committee and chair of the Parliament’s delegation to the US added: 

“It’s not worth just swallowing the bitter pill in this case. This deal makes trade more expensive and less attractive. And the short-term relief comes at the cost of our long-term economic interests. It also sends the wrong signal: if we fold under pressure, what’s to stop Trump from coming after our legislation next? 

“As the world’s largest trading bloc, the EU has far more leverage than we used. We are the only side facing a 15% tariff. At the same time, we have pledged hundreds of billions in investment in the US, instead of backing our own industries. It’s crucial to, at least, extend the list of tariff-free products.”