The European Parliament has paused ratification of a trade agreement between the European Union and the United States, following a ruling by the U.S. Supreme Court and the subsequent imposition of new U.S. Tariffs. The decision, announced today, will allow for a legal assessment and demand clear commitments from Washington, according to officials.
The move comes after the U.S. Supreme Court deemed previous tariffs imposed under the International Emergency Economic Powers Act (IEEPA) illegal and unconstitutional. Further complicating matters, U.S. President Donald Trump has proposed a new series of tariffs based on a different legal justification, creating additional uncertainty. Bernd Lange, Chairman of the European Parliament’s International Trade Committee (INTA) and the standing rapporteur on the issue, described the situation as “Trump’s tariff chaos,” citing unanswered questions and growing instability for the EU and other trading partners.
“We had to put on the brakes. Anything else would have been irresponsible,” Lange stated. “The U.S. Supreme Court’s ruling on the application of IEEPA tariffs is clear and unambiguous. Its effects cannot simply be brushed aside. Before we take further steps, we necessitate clarity and legal certainty.”
Socialists and Democrats (S&D) in the European Parliament were instrumental in securing the pause, and expressed satisfaction that other parliamentary factions agreed on the need for a suspension to thoroughly evaluate recent developments. Brando Benifei, S&D coordinator in the International Trade Committee, emphasized that the foundations of the trade deal, initially negotiated in Scotland last year, had shifted. “The EU was prepared to offer trade concessions to our American partners, on the condition that we maintain a relatively more favorable position than other countries in accessing the U.S. Market. This context has now changed, and we must take that into account,” Benifei said.
The previously negotiated agreement, improved under Lange’s leadership, aimed to provide greater security and stability for European workers and businesses. However, a newly announced 15% tariff from President Trump, revealed via social media, has thrown the deal into disarray. The S&D group deemed it irresponsible to proceed without stability and security for European economic actors.
According to the S&D, Trump’s latest tariff announcement would increase overall tariffs for the EU by 0.8 percentage points, with some countries facing even higher increases depending on the product category. The S&D group had previously warned against unfair announcements and unjustified threats from the U.S. In the realm of trade, including recent comments regarding Greenland. They maintain that the EU must be prepared to suspend negotiations or freeze the application of the EU-U.S. Agreement if circumstances require.
Lange stated that the ball is now in the U.S. Government’s court, awaiting a clear statement and clarification on whether the U.S. Will honor commitments made in Scotland. The European Parliament will suspend work on implementing the agreement until such clarity is provided.
