EU faces higher tariffs if trade deal fails – US envoy

US Ambassador to the European Union Andrew Puzder warned the bloc should expect more tariffs if it doesn’t approve a stalled trade deal with Washington.

“If the trade deal goes away, you guys get hit with the increased tariffs, and for us, nothing changes,” Puzder told Bloomberg News on Monday.

“It’s economic malpractice not to pass this,” he added.

Puzder’s remarks come as the full European Parliament prepares for a vote Thursday on the EU-US trade deal, which US President Donald Trump and Ursula von der Leyen, the EU’s top executive, sealed last year in Turnberry, Scotland.

The vote has been postponed several times over Trump’s threat to annex Greenland and uncertainty about the US tariff strategy, raising questions about whether the transatlantic relationship was headed for another rupture. The pact would set a 15% ceiling tariff on most EU goods in exchange for eliminating duties on many US products.

Puzder expressed confidence that the deal would clear parliament.

“I think we have enough votes,” Puzder said during a Bloomberg TV interview.

The US ambassador cited South Korea as an example of how things may sour if the transatlantic deal falls apart. Trump threatened 25% tariffs on the country in January after accusing it of “not living up” to a prior trade pact.

“Ask South Korea,” he said, responding to a question about what ramifications the EU may face.

The EU-US trade pact was most recently thrown into doubt when the Supreme Court struck down Trump’s global tariffs last month. Trump has since imposed a temporary 10% levy on all imports while his administration works to rebuild its tariff structure.

Following the ruling, EU lawmakers amended the trade deal, adding a provision that the terms can only be implemented once the US guarantees the 15% tariff ceiling. They also injected a sunset clause stating the deal will expire in March 2028 unless both sides agree to prolong it.

Lawmakers also want the US to reduce a 50% metals tariff, which has been broadened to cover hundreds of products containing steel and aluminum.

If EU lawmakers approve the deal on Thursday, they will then negotiate with member states to craft a finalized text.