Legal Ruling Sparks Parliamentary Freeze
European Parliament negotiators suspended the EU-US trade agreement on Monday following a US Supreme Court ruling that found several 2025 tariffs imposed by Washington were illegal. In response, President Donald Trump announced fresh 15% import duties, prompting EU lawmakers to call for clarity before moving forward. German MEP Bernd Lange, chair of the Parliament’s trade committee, said the situation had changed dramatically and that a formal US commitment is needed to respect the deal long term.
Controversial Deal Faces Scrutiny
The trade pact, agreed in July 2025 by European Commission President Ursula von der Leyen and Trump, has faced criticism for favoring the United States. It maintains 15% US tariffs on EU exports while allowing most American goods into Europe duty-free. Parliament had already paused the deal previously after Trump threatened tariffs on EU nations over Greenland, and the planned vote this week has now been effectively shelved.
Diplomatic Efforts Intensify
EU Trade Chief Maroš Šefčovič met with Parliament negotiators and spoke with US Trade Secretary Howard Lutnick and Trade Representative Jamieson Greer over the weekend to resolve the uncertainty. Šefčovič also consulted G7 counterparts, emphasizing that the agreement must be respected and tariffs clarified. While he hopes Parliament can still vote in March, the Supreme Court ruling underscores limits on Trump’s authority and adds new uncertainty to US trade policy, as Washington pursues an aggressive agenda to bring industry home and boost federal revenue.
