EU clarifies $1.4 trillion US investment pledge "in no way binding" Amid Trump Tariff Threats

The European Union has said its pledge to invest over a trillion dollars in the United States is “in no way binding,” just days after US President Donald Trump threatened punitive tariffs if the commitment is not upheld.

The investment promise – which includes $600 billion in infrastructure and $750 billion in energy purchases – was announced as part of a recent EU-US trade deal negotiated between Trump and European Commission President Ursula von der Leyen, Caliber.Az reports, citing foreign media.

However, speaking on Thursday, European Commission spokesperson Olof Gill clarified the nature of the pledge.

“The commitments… we have transmitted to the US administration [are] aggregate intentions as regards energy spending and as regards investment in the US economy by EU companies,” he said. “They are in no way binding."

"The Commission does not have the power and would never seek the power to try to enforce something like that, but they are faithfully transmitted intentions,” he added.

Trump had earlier warned the EU that failure to deliver on the $600 billion infrastructure pledge could result in a 35% tariff on EU goods.

“They gave us $600 billion that we can invest in anything we want,” the President said on Tuesday. “I can do anything I want with it. And the purpose was, they've been, you know, ripping us for so many years that it's time that they pay up, and they have to pay up.”

Gill’s comments coincided with the formal implementation of a new 15% tariff ceiling on most EU exports to the United States, as set out in the broader trade “framework agreement.” The new rate replaces a previous 10% minimum tariff and includes a baseline levy of 4.8%.

Despite the new ceiling, EU exports of cars and car parts continue to face a 27.5% tariff. Gill said he was unable to provide a timeline for when the higher rate would be brought into line with the 15% ceiling.

“We have a clear commitment from the US that our 15% across-the-board tariff ceiling will also capture EU exports of cars and car parts, pharmaceuticals, and semiconductors, and we look forward to that being implemented ASAP,” he said.

The developments mark a fresh point of friction in transatlantic relations, as the EU seeks clarity on Washington’s expectations and enforcement of trade pledges.

By Aghakazim Guliyev