The European Union's executive branch stated that it is committed to taking strong measures in response to any breach of an important tariff agreement by the US, following the announcement of new trade investigations by President Donald Trump's administration.
"We will be seeking further clarity from the US on how the opening of this section 301 investigation would interact with" the EU-US agreement struck last year, European Commission spokesman Olof Gill says.
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"The commission would respond firmly and proportionately to any breach of the joint statement commitments," he adds.
Gill expressed that the European Union resonated with the apprehension held by the US regarding the issue of structural overcapacity in the global economy.
The fate of the EU-US tariff agreement has come under scrutiny following a ruling by the US Supreme Court in February, which determined that Trump does not possess the legal authority to enforce tariffs under the 1977 legislation.
Trump retaliated by imposing new tariffs of 10 percent on imported products. However, the European Union has announced that it has received promises from the US that it will uphold the agreement.
The commission stated that the European Union is currently adhering to the agreement while anticipating that the US will demonstrate a similar level of commitment.
"We have not received any indication that the US administration intends to deviate from those commitments," Gill says.
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Members of the European Parliament's trade committee within the European Union are considering granting approval in the following week for the elimination of tariffs on American manufactured products, marking a significant advancement in the implementation of the agreement from the European perspective.