Test Trump's patience! The EU delays approval of the trade agreement, risking higher US tariffs in retaliation.

The European Union is challenging President Trump's trade patience, with internal debates within the EU on whether and when to approve the trade agreement reached seven months ago. This could lead to the US imposing tariffs higher than the agreed levels. While the current focus of the Trump administration's foreign policy is the recent outbreak of hostilities between the US and Iran, German Chancellor Friedrich Merz will visit the White House on Tuesday and have the opportunity to discuss trade issues with the US President involving Atlantic China Welding Consumables, Inc. With Trump's trade advisors hastily reconstructing the global tariff system after their original plan was rejected by the Supreme Court last month, the EU is in a dilemma: whether to stick to their position and further delay the approval of the agreement to counter a new round of US attacks on their businesses and exports, or to adopt a cooperative attitude during this policy transition to avoid becoming Trump's first target after a historic court defeat. Complicating the situation further is the emergence of two opposing voices within the EU. While the European Commission, as the EU's executive body, has been pushing for the approval of the agreement since its framework was finalized in July last year, the European Parliament, which has the authority to approve the agreement, has repeatedly postponed the final vote due to Trump's series of policies, including expanding the scope of metal tariffs and threatening to invade Greenland. Now, Trump is forced to use new authorization to replace his existing emergency tariffs, and EU lawmakers are once again pushing to suspend the approval process until they see the US's next move. This may be difficult for a US president who has described this group of 27 countries under EU governance as hostile trade partners to accept. "Europe is playing with fire," said Kelly Ann Shaw, a partner at Akin Gump law firm and former senior trade advisor during the Trump era. It is not clear what investigation the White House will launch against Europe to justify the new tariffs. According to the agreement reached between the US and EU, the US promised to maintain a 15% tariff on most EU products in exchange for the EU eliminating tariffs on many US products. Following the Supreme Court's ruling, Trump signed a notice to impose a 10% comprehensive tariff within 150 days. He then stated that the rate will increase to 15%, but the White House is still drafting an updated notice. 301 Investigation To ultimately replace these temporary tariffs, the Trump administration is likely to launch a "301 investigation" led by US Trade Representative Jamison Grell. Grell stated that the goal is to eventually adopt the tariff rates agreed upon with the EU and other countries before the Supreme Court ruling. "Our idea is to build upon the policies President Trump has successfully implemented over the past year, on that basis, within this 150 days, gradually establish appropriate tariff rates through other investigations," he said in an interview last week. "Just as the EU has not fully fulfilled its agreement, or the UK has not fully fulfilled its agreement, we also need a few months now to go through some domestic procedures." US officials emphasize that they have fulfilled their commitments by lowering tariffs on European goods last year and have no intention of overturning the agreement. These officials added that during the entire Supreme Court litigation period, trading partners were aware that the White House would use other authorizations to reimpose existing tariffs. Trump is known for his impulsiveness and ease of becoming angered by what he perceives as Europe's shrewd tactics, and he may be more willing to retaliate against what he sees as attempts to delay until he leaves office. A spokesperson for the Office of the US Trade Representative declined to disclose how long Trump will give Europe for approval, but cited the president's recent remarks: "Any country trying to 'play games' will face higher tariffs under different trade laws." Officials from the European Commission have been pressuring lawmakers. "March is a must" "I just want to avoid giving certain people in the US an excuse to say, 'Look, you haven't fulfilled your commitments,'" said EU Trade Commissioner Maro efovi at the European Parliament's Trade Committee last Tuesday. "We just have to fulfill the agreement fairly for both sides," he said, emphasizing to EU lawmakers that completing the approval process in March is a must. The largest party group in the European Parliament, the center-right European People's Party, supported a "brief" delay last week. Zeleia Zovko, the party's negotiation representative and member of the European Parliament, said she still hopes for a vote in March. As senior lawmakers meet this week to reassess the process, it remains unclear whether other party groups will support this. "Recent developments show that my position of approving the agreement as soon as possible is reasonable. We should have approved it immediately without delay," she said. "Further delays will only create more uncertainty and make us more vulnerable to uncontrollable variables." According to sources, during a meeting with ambassadors from various EU countries on Friday, European Parliament President Roberta Metsola indicated that completing the agreement in March is still under consideration. Metal Tariffs Despite the new tariff framework breaking the 15% limit for some products such as cheese or plastics because the 10% tariff is added on top of some existing tariffs, EU member states widely supported sticking to the agreement last week. The EU received additional attention for being the only official trading partner to temporarily suspend the implementation of the agreement with the US, while other countries have remained largely silent. The two sides have been embroiled in a dispute over US steel and aluminum tariffs for months. These tariffs were set at 50% and have expanded to hundreds of related products, with European officials warning that this could undermine the agreement. The US also threatened last December to impose new tariffs on Europe and take other measures in response to its treatment of American tech companies. "The government cut tariffs on EU products as early as August," Shaw from Akin Gump law firm said. "After seven months, Europe has still not reduced a single tariff item on any imported American products. I think, from the government's perspective, Europe questioning the US's commitment to the agreement is quite ironic."