The European Union and India are pushing back after U.S. President Donald Trump announced new 15% tariffs on global imports under Section 122 of the Trade Act. Both sides have signaled they will pause ongoing negotiations and monitor Washington's next moves.
Bernd Lange, Chair of the European Parliament's Committee on International Trade, wrote on X (formerly Twitter) on May 22: "Aren't the new tariffs under Section 122 a violation of the agreement?" He added, "No one knows whether the United States will or can comply with the agreement. Therefore, I will propose on the 23rd to suspend legislative work until there is a comprehensive legal assessment and clear commitment from the U.S. side."
The U.S. and EU reached a trade agreement last summer under which the EU would eliminate tariffs on American products in exchange for the U.S. lowering reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA) to 15%. The European Parliament had been scheduled to vote on May 24 on removing tariffs on U.S. industrial goods and lobster as part of the deal.
The European Commission also issued a statement demanding "a full explanation of the measures the United States will take following the IEEPA ruling." The Commission added that "the current situation does not help achieve 'fair, balanced, and mutually beneficial' transatlantic trade and investment relations as stated in the EU-U.S. joint statement last August." This marks the Commission's first official response since the U.S. Supreme Court ruling.
India's trade delegation, which had been set to depart for Washington to negotiate a trade deal, also canceled its trip. Earlier this month, India and the U.S. had agreed on a preliminary trade framework that included reducing tariffs on Indian goods from 50% to 18%, halting Indian imports of Russian crude oil, partially opening India's agricultural market, and India purchasing approximately $500 billion worth of American products.
Australia also voiced opposition. Trade Minister Don Farrell said in a statement: "We have consistently opposed these unjust tariffs. We will work to eliminate U.S. tariffs."