BRUSSELS (AP) — A key trade deal between the European Union and the United States is on hold after EU lawmakers demanded clarification following a U.S. Supreme Court ruling that struck down many of former President Donald Trump’s tariffs. The pause underscores growing transatlantic economic uncertainty triggered by the court’s decision and subsequent actions by Trump.
The EU Parliament’s move, announced Monday, postpones a vote scheduled for Tuesday on the trade agreement reached last July. Negotiators will reconvene on March 4, seeking assurances from Washington that the deal’s terms will be honored.
“We want to have clarity from the United States that they are respecting the deal,” said Bernd Lange, head of the parliamentary committee involved. Lawmaker Anna Cavazzini echoed the sentiment, stating a vote was “not justifiable” given the current uncertainty.
The Supreme Court’s Friday ruling determined that Trump exceeded his authority when imposing tariffs under a 1977 law. In response, Trump swiftly announced a new 15% global duty on imports, raising concerns in Brussels that EU goods could face higher levies than originally agreed upon.
Under the existing EU-US trade agreement, Washington committed to a 15% tariff on most goods from the bloc. However, the new duties, layered on top of existing “most favored nation” tariffs of a few percent, could effectively raise the average tariff on EU manufactured goods to 17 or 18%, according to Jacob Funk Kirkegaard, a senior fellow at the Peterson Institute for International Economics.
Despite these concerns, Kirkegaard noted that the agreement remains beneficial for the EU. “There continues to be potentially significant benefits for the EU to keeping the Turnberry agreement in place,” he said.
U.S. Trade Representative Jamieson Greer stated Sunday that existing trade deals with China, the EU, and other partners would remain in force. However, the European Commission is awaiting further explanation from the U.S.
“We look forward to our American counterparts explaining to us precisely what is happening,” said Commission spokesman Olof Gill.
China also urged the United States to cancel the unilateral tariffs Monday. The UK government indicated it does not anticipate the ruling will significantly impact its 2025 trade deal.
The Supreme Court’s decision represents a significant setback for Trump and a rebuke from a court that had largely supported his policies. Kirkegaard characterized the ruling as ultimately “much better” for Europe and other nations, reducing Trump’s ability to impose tariffs unilaterally.
“The Supreme Court has reduced Donald Trump’s personal capacity to do tariffs by tweet,” he told AFP. “While tariffs can still be imposed, it would be through a process that would provide more predictability.”
The situation remains fluid, with markets closely watching for further developments and clarity from Washington.
