Supreme Court Ruling Sparks Uncertainty
European Parliament negotiators on Monday paused the EU-US trade agreement after the US Supreme Court ruled that several 2025 tariffs imposed by President Donald Trump were unlawful. In response, Trump announced new 15% import duties, throwing the future of the agreement into question. German MEP Bernd Lange, chair of the parliamentary trade committee, said the legal situation had “totally changed,” and the EU needed a clear commitment from Washington before moving forward.
EU Demands Guarantees on Deal Terms
The 2025 pact, originally negotiated by Ursula von der Leyen and Trump, had been criticized in Europe for favoring the US. It maintains 15% tariffs on EU exports while allowing most American goods to enter the bloc duty-free. Parliament had planned a vote this week, but it has now been suspended until EU lawmakers receive assurances that the deal will be honored.
Diplomacy Under Pressure
EU Trade Commissioner Maroš Šefčovič held emergency talks with US Trade Secretary Howard Lutnick and Trade Representative Jamieson Greer, as well as a video call with G7 counterparts, to contain the fallout. Šefčovič emphasized that clarity on implementing the 15% tariff structure is critical, stating, “a deal is a deal and we have to respect it.”
Since Trump’s return to office, the US has pursued a tough trade agenda to bring manufacturing back home and boost federal revenue. The Supreme Court ruling, however, has highlighted limits on presidential authority over tariffs, leaving the EU-US deal’s future uncertain.
