Supreme Court Ruling Throws Deal Into Doubt
European Parliament negotiators have put the brakes on the EU-US trade agreement after fresh uncertainty erupted in Washington. The move follows a ruling by the Supreme Court of the United States that found some tariffs imposed in 2025 were illegal. In response, President Donald Trump announced new 15% duties on imports, further muddying the waters around the deal.
German MEP Bernd Lange, who chairs the Parliament’s trade committee, said the legal foundation of the agreement had “totally changed,” arguing that the introduction of new tariffs created an entirely different framework from the one originally negotiated. Lawmakers now want firm assurances from Washington that the agreement will be respected in the long term before moving forward.
Parliament Pulls the Handbrake
The trade pact, struck in July 2025 by Ursula von der Leyen and Trump after weeks of tense negotiations, had already faced criticism in Europe for being unbalanced. It locks in 15% US tariffs on EU exports while granting largely duty-free access for American goods entering the bloc.
Although a parliamentary vote had been scheduled, it has now effectively been scrapped. The European Parliament must approve the agreement before it can take effect, giving MEPs significant leverage. The deal had previously been frozen when Trump threatened tariffs on EU countries over Greenland, but work had resumed until the latest developments derailed progress once again.
Brussels Seeks Clarity from Washington
EU Trade Commissioner Maroš Šefčovič met with parliamentary negotiators following discussions with US Trade Secretary Howard Lutnick and Trade Representative Jamieson Greer. He stressed that clarity over how the 15% “all-inclusive” tariff would be applied is essential, insisting that “a deal is a deal.”
Šefčovič also consulted G7 counterparts in an effort to calm tensions sparked by Washington’s latest tariff moves. He expressed hope that Parliament could still vote on the agreement during its March plenary session, but much now depends on whether the US can provide guarantees that the terms will hold.
Since returning to office, Trump has pursued an aggressive trade agenda aimed at reshoring American industry and increasing federal revenues. However, the Supreme Court’s ruling found that he had exceeded his authority by imposing certain tariffs without congressional approval under emergency powers legislation, leaving the future of the transatlantic trade pact hanging in the balance.
