### 📈 EU Demands US Adherence to Trade Pact After Supreme Court Ruling

The European Commission has called for "full clarity" from Washington, insisting that the U.S. honor the terms of last year’s bilateral trade agreement following a disruptive weekend of tariff hikes. • The Conflict: Following a U.S. Supreme Court ruling on Friday that struck down global tariffs, President Trump imposed temporary 10% across-the-board levies, which were further increased to 15% a day later. • The Agreement: Under the existing pact, the U.S. capped tariffs on most EU goods at 15%, with specific exemptions (0% tariffs) for sectors like aircraft and spare parts. In exchange, the EU removed duties on various U.S. goods. • Economic Impact: • The EU warns that unpredictable tariffs are undermining global market confidence. • The Commission insists on maintaining the previously agreed "all-inclusive ceiling" to ensure "fair and balanced" trade. • For Sri Lanka’s export-oriented economy, particularly in apparel & textiles and tea, heightened volatility in Transatlantic trade relations often signals broader global supply chain instability and shifting demand in Western markets. • Next Steps: EU Trade Commissioner Maros Sefcovic has initiated discussions with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to resolve the breach of the "deal is a deal" stance.