EU urges US to restore 15% deal

Tariffs are back at the center of the EU-US relationship — again. But this time the fight is not over whether there should be a deal. It is over whether Washington will actually honor the one it already struck. The immediate spark is simple: Brussels wants the U.S. to put back a 15% tariff ceiling from last year’s agreement, and fast, before the deal’s first anniversary in July. (money.usnews.com) ### What changed this week? EU trade chief Maroš Šefčovič met U.S. Trade Representative Jamieson Greer in Paris on May 5 and pushed for the U.S. to “swiftly” restore the tariff terms agreed in 2025. The European Commission’s message was that the core parts of the deal should be operating before July, when the agreement hits the one-year mark. (money.usnews.com) ### What is the 15% deal? Basically, last year’s arrangement capped U.S. tariffs on most European goods at 15%, including vehicles, while the EU agreed to remove duties on U.S. industrial goods. That cap matters because it was supposed to stop the old trade-war cycle from restarting every few months. (busi([money.usnews.com)the flashpoint? Because the U.S. is now openly threatening to go above that ceiling. President Trump said on May 1 that tariffs on EU cars and trucks would rise to 25%, accusing the bloc of not fully complying with the deal. Andrew Puzder, the U.S. ambassador to the EU, then said the 25% levy could come “relatively soon” if Europe does not move quickly to ratify the agreement. (cbsnews.com) ### Why is Brussels so alarmed? Cars are not some side issue here — they are the test case. If Washington can lift auto tariffs from 15% to 25%, then the whole idea of a negotiated ceiling starts to look optional. And once that happens, every sector starts pricing in the risk that the U.S. could reopen the deal whenever politics shifts. (businesstimes.com.sg)lears-trade-deal)) ### Why does the legal backdrop matter? Because Trump’s tariff strategy already lost one of its biggest legal supports. On February 20, 2026, the Supreme Court held that the International Emergency Economic Powers Act does not authorize the president to impose tariffs. That knocked out the administration’s country-speci(businesstimes.com.sg). (seyfarth.com) ### So are refunds part of this story too? Yes — and they make the politics messier. Courts have already said companies that paid the invalidated tariffs are entitled to refunds, and trade lawyers have been scrambling through what could be a huge reimbursement process. Estimates differ, but the basic point is the same: the administration is trying to preserve leverage abroad while cleaning up a very expensive legal defeat at home. (usnews.com) ### What is each side really trying to do? The EU wants predictability. The U.S. wants leverage. Brussels is saying, in effect, if there is a deal, act like there is a deal. Washington is saying ratification and implementation have dragged on too long, so tariff pressure stays on the table. (money.usnews.com) ### Bottom line This is no longer a technical dispute about tariff schedules. It is a credibility test for the 2025 EU-US trade deal — and the first sector that could feel the answer is autos. (businesstimes.com.sg)