EU-US trade deal under threat: What European Parliament decided
Photo: Bernd Lange (Vitalii Nosach, RBC-Ukraine)
The European Parliament has paused the ratification of a major trade agreement with the United States. The move comes in response to a US Supreme Court decision that overturned most of the tariffs imposed by US President Donald Trump, stated Bernd Lange, chair of Parliament’s International Trade Committee and standing rapporteur for the US.
Read also: Trump vs. Supreme Court: President finds loophole for global tariffs
Why did the European Parliament put the deal on hold
Lange said the Supreme Court ruling had a significant impact on the negotiation process and created uncertainty in EU-US trade relations.
He stressed that it is impossible to continue working on the agreement as if nothing had happened.
"A key instrument used on the US side to negotiate and implement the Turnberry Deal is no longer available. The situation is now more uncertain than ever. This runs counter to the stability and predictability we sought to achieve with the Turnberry Deal," Lange said.
As a result, he said, the situation has become less predictable, which undermines the goals of stability and legal certainty in bilateral trade.
What will happen next with the vote
The European Parliament announced that the planned committee vote will not take place. Lawmakers will reassess the situation next week after additional analysis.
Work on the approval of the agreement has been suspended until clarity and stability in trade relations between the EU and the US are restored.
Trump’s tariff escalation
Trade tensions intensified after Donald Trump found a legal workaround to impose new tariffs despite the Supreme Court’s earlier ruling that struck down his global tariffs. The President found legal mechanisms to introduce new tariffs despite a court ban.
Shortly afterward, Trump announced an increase in the tariff rate from 10% to 15%.
The US administration’s actions sparked concern in global markets and drew criticism from key US trade partners, including the European Union.
Brussels officials noted that Washington’s move puts last year’s agreements at risk: at that time, the US agreed to limit tariffs on the EU, while the EU refrained from imposing mirror tariffs on American goods.
