The US Supreme Court has ruled today to halt tariffs imposed under the International Emergency Economic Powers Act (IEEPA). In response, the US Administration has indicated it will shortly enact a new 10% global tariff and initiate new tariff investigations under alternative instruments.

The American Chamber of Commerce to the EU (AmCham EU) continues to oppose broad-based tariffs as they disrupt supply chains and increase costs for businesses and consumers. We echo the US Chamber of Commerce’s call for the US Administration to use this ruling as an opportunity to reset its overall tariff policy.

There is now significant uncertainty for businesses that depend on a stable and predictable trade policy environment. Further guidance from authorities is required for companies to understand how the latest developments will impact their operations.

The EU-US trade and investment relationship is the most important economic partnership in the world. AmCham EU looks to the EU and the US to continue working closely together in support of their shared growth and security.

The American Chamber of Commerce to the EU (AmCham EU) is concerned about recent developments that may fundamentally undermine the EU-US Framework Agreement and lead to tit-for-tat measures that will hurt American and European companies. If the dispute escalates, it could quickly spread across large parts of the economy, with far-reaching knock-on effects. It would cause severe damage to economic welfare and security on both sides. A negotiated outcome must urgently be found.

The rules-based international system brings certainty and stability to business relations around the world to the benefit of all companies operating across borders. When the time is right, both sides should seek to return to the spirit of the EU-US Framework Agreement, as the best available way to safeguard the EUR 8.7 trillion transatlantic economy.

Implementation of the EU–US Framework Agreement is essential to bring greater stability to transatlantic trade and investment. With the Commission’s tariff reduction proposals now before the European Parliament and the Council of the EU, swift adoption is critical to help businesses plan ahead. The co-legislators should therefore: 1) stick to the agreed scope, 2) avoid unnecessary duplication and 3) focus on restoring predictability for businesses. Following these principles will ensure the EU and the US can continue building on the Agreement while preventing a tit-for-tat that would harm both sides.

Following the EU-US Framework Agreement, AmCham EU conducted a flash survey of its members to find out how they expect the transatlantic business relationship to evolve in light of the deal. This survey builds on our poll from January, which captured business expectations for the new EU and US administrations around US Inauguration Day. The September survey finds that, while American companies in Europe maintain a pessimistic outlook on transatlantic trade and investment, the Framework Agreement has nearly cut this pessimism in half (down to 46% from 89% in January).

Authored by Malte Lohan, CEO, AmCham EU

By tabling two proposals to implement the EU-US framework agreement, the European Commission has moved quickly to bring more predictability to transatlantic trade. The European Parliament and Council should now follow suit and approve the proposals without delay. We are concerned that any attempt to postpone or reopen the agreement – whether initiated in Brussels or Washington, DC – would undermine the predictability that the deal seeks to establish. The sooner the deal is fully implemented, the sooner businesses will benefit from a more stable trading environment and both sides can build on the terms set out in the EU-US Joint Statement. 

For more on the EU-US Joint Statement, read AmCham EU’s initial take on the deal, including the importance of expanding the number of sectors in the zero-for-zero tariff list, with the goal of creating a zero-tariff zone across the Atlantic.