Trump tariffs row deepens as UK and EU seek clarity

Published: 24 February 2026. The English Chronicle Desk. The English Chronicle Online.

Fresh uncertainty over Trump tariffs has unsettled governments and markets across Europe this week. The renewed rhetoric from Donald Trump has left the UK and European Union urgently seeking clarity. Business leaders now fear that months of negotiation could unravel within days.

The row intensified after a landmark ruling by the Supreme Court of the United States last week. Justices decided that the president had exceeded his authority when imposing sweeping “liberation day” measures. That decision triggered fresh threats from Washington and reignited global trade tensions.

On Monday, Trump declared he could deploy tariffs in a “more powerful and obnoxious way.” He insisted the court had upheld other levies, giving him broader legal certainty. His comments were posted on Truth Social and echoed across financial markets. Investors reacted swiftly as the possibility of escalating Trump tariffs unsettled confidence.

In London, the government moved to reassure businesses and households. A spokesperson for Keir Starmer said the new 15 percent global tariff might not affect most elements of the UK deal. That agreement, reached last May, fixed many goods at a 10 percent rate.

However, uncertainty remains over what rate will apply from Tuesday. Officials are unclear whether customs authorities will default to 15 percent or retain earlier levels. The government stressed that discussions are ongoing and described the situation as evolving. While no one wants a trade war, ministers insist every option remains open.

Across Brussels, the reaction has been equally cautious. The European Commission paused ratification of its own agreement with Washington for a second time. That deal, struck last July, included a 15 percent blanket tariff on EU imports. It had already faced disruption during diplomatic tensions over Greenland earlier this year.

Commission spokesperson Olof Gill demanded immediate clarity from the United States. He said Brussels needed precise information before deciding on next steps. A key trade committee vote scheduled for Tuesday morning has now been postponed. European officials want legal certainty before committing further to the arrangement.

The political backdrop in Washington remains complex. The Supreme Court decision was approved by a 6-3 majority. Trump criticised the ruling sharply, accusing the court of aiding the wrong interests. At the same time, he argued it confirmed the legality of other tariff mechanisms. That interpretation now underpins his threat of stronger Trump tariffs.

Financial markets signalled unease as trading opened on Wall Street. The Dow Jones Industrial Average fell sharply in early afternoon dealings. The tech-heavy Nasdaq Composite also declined, reflecting broader investor anxiety. The S&P 500 slipped as traders weighed the implications for global supply chains.

Senior US officials attempted to calm tensions over the weekend. Jamieson Greer, Washington’s top trade negotiator, said previously agreed deals would remain in place. He insisted the new 15 percent rate would not apply to countries with standing agreements. That list includes the UK, EU, Switzerland, Japan, South Korea, Vietnam and Lesotho.

Despite those assurances, confusion persists among exporters and importers. The British Chambers of Commerce warned that many firms still lack clear guidance. Its new president, Andy Haldane, told the BBC he feared tariffs could rise automatically. If that happens, UK exporters would face a five percent increase overnight.

The BCC estimates the extra charge could total between £2 billion and £3 billion. That burden would likely fall on exporters, American importers or end consumers. Either outcome risks pushing up prices and squeezing profit margins. The lobby group described it as vital for ministers to intensify negotiations immediately.

Attention is also turning to the US Congress, which may gain influence following the court ruling. Business groups believe lawmakers could shape the future scope of emergency trade powers. Meanwhile, German industry leaders are urging swift diplomatic engagement. Peter Leibinger of the BDI called on Brussels to secure rapid clarification.

Within the European Union, trade commissioner Maroš Šefčovič emphasised respect for existing commitments. He repeated that point during a call with G7 trade ministers. According to his social media statement, reassurance from Washington is essential. European officials argue stability benefits both sides of the Atlantic.

Currency markets offered mixed signals as the drama unfolded. The US dollar edged lower against a basket of major currencies. Traders reacted after Customs and Border Protection announced changes to tariff code enforcement. The agency said it would deactivate codes linked to emergency powers orders at midnight Tuesday.

That step raised fresh questions about refunds for importers. The Supreme Court decision potentially affects more than 175 billion dollars in revenue. Economists at the Penn Wharton Budget Model suggest those funds could be subject to claims. Customs authorities have yet to clarify how such repayments might work.

For British exporters, the stakes are significant. The United States remains one of the UK’s largest trading partners. Any abrupt shift in Trump tariffs would ripple through manufacturing, agriculture and services. Small firms, already navigating inflationary pressures, could struggle with sudden cost increases.

Government advisers in London are weighing diplomatic and economic responses carefully. Officials insist protecting national interest remains the guiding principle. They also stress that escalation would serve neither side. Still, the language from Washington has heightened anxiety across boardrooms.

The broader geopolitical context cannot be ignored. Trade has become a central instrument in strategic competition. Tariffs are now deployed not only for economic leverage but also political signalling. That reality complicates efforts to maintain predictable transatlantic commerce.

In Brussels and London alike, the priority is clarity rather than confrontation. Leaders want confirmation that signed agreements will be honoured. Businesses seek firm guidance before Tuesday’s collection deadline. Investors, meanwhile, hope rhetoric will give way to stability.

As midnight approaches in Washington, uncertainty lingers over the precise scope of Trump tariffs. Governments continue private discussions behind closed doors. Markets will watch closely for definitive statements from the White House. Until then, exporters on both sides of the Atlantic remain in suspense.

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