Supreme Court Ruling Throws Deal Into Doubt
The European Parliament has suspended work on the EU-US trade agreement after a US Supreme Court ruling cast uncertainty over the legality of tariffs introduced in 2025. The court found that some of the duties imposed by President Donald Trump exceeded his authority, as they were enacted without Congressional approval under legislation intended for national emergencies.
In response, Trump announced new 15% tariffs on imports, further complicating the situation and raising fresh concerns in Brussels about whether the terms of the deal can still be trusted.
Parliament Demands Clarity from Washington
German MEP Bernd Lange, who chairs the European Parliament’s trade committee, said the legal landscape has shifted dramatically. According to him, the introduction of new tariffs has fundamentally altered the foundation on which the 2025 agreement was built.
The deal, negotiated last July between European Commission President Ursula von der Leyen and Trump after weeks of tense negotiations, fixed US tariffs on EU exports at 15% while granting most American goods tariff-free access to the EU market. Critics in Europe have long described the arrangement as unbalanced.
A vote to implement the agreement had been scheduled, but it has now been scrapped. Lawmakers say they need firm assurances from Washington that the deal will be respected before moving forward.
Emergency Talks as Tensions Rise
Parliament’s negotiators held an urgent meeting with EU Trade Commissioner Maroš Šefčovič, who has been in contact with US Trade Secretary Howard Lutnick and US Trade Representative Jamieson Greer. Šefčovič also consulted with his G7 counterparts in an effort to contain the fallout from Washington’s latest move.
He stressed that clarity is essential, emphasizing that both sides must honor the agreed 15% “all-inclusive” tariff framework if the partnership is to survive. While he expressed hope that the Parliament could revisit the vote during its March plenary session, the path forward now depends on whether the United States can provide guarantees that the agreement will stand despite the court’s ruling.
The suspension underscores growing strain in transatlantic trade relations, as Washington’s push to reshape its economic policy continues to ripple across global markets.
