The transatlantic trade landscape, often fraught with tension, faces renewed uncertainty following a US Supreme Court ruling and subsequent tariff threats from President Donald Trump. European Union lawmakers have moved to suspend the implementation of a major trade agreement, a deal painstakingly negotiated last year, in response to what they describe as a fundamental shift in its legal underpinnings. This development casts a shadow over economic relations between the two powerful blocs, just as a vote on the agreement was imminent.
German MEP Bernd Lange, who chairs the parliamentary trade committee, articulated the European position, stating that the legal basis for the deal has “totally changed” with the introduction of fresh 15% duties on imports by Washington. Lange emphasized the need for a clear declaration from the United States that the current situation is temporary and that a long-term commitment to the agreement will be honored. This sentiment underscores a broader European concern that the terms of engagement are being unilaterally altered, undermining confidence in future trade relations.
The agreement itself, reached in July 2025 by European Commission President Ursula von der Leyen and President Trump, had already been viewed with skepticism by many in Europe. It notably locked in 15% US tariffs on EU exports while granting most American goods duty-free access to the European market. This perceived asymmetry fueled criticism from the outset, with some European voices describing it as lopsided. The deal had previously faced a freeze when Trump threatened tariffs against several EU nations in an attempt to acquire Greenland, though parliamentary work eventually resumed, and a vote was scheduled for the very near future.
In the immediate aftermath of the Supreme Court’s decision last Friday, which found that Trump had overstepped his authority by imposing tariffs without Congressional approval in situations not deemed national emergencies, Washington announced new tariffs. This move directly triggered the EU’s decision to halt progress on the trade pact. EU Trade Chief Maroš Šefčovič convened an extraordinary meeting with parliamentary negotiators and held discussions over the weekend with his US counterparts, Trade Secretary Howard Lutnick and Trade Representative Jamieson Greer. Šefčovič also engaged in a video call with G7 counterparts, seeking to de-escalate the situation ignited by Washington’s latest tariff salvo.
Šefčovič reiterated the European Union’s stance following his meeting with MEPs, stressing the critical importance of clarity regarding how the existing deal, specifically the 15% all-inclusive tariff, would be respected. He emphasized that “a deal is a deal and we have to respect it,” expressing hope that the European Parliament would still be able to vote on implementing the agreement during its March plenary session. However, the suspension signals a significant hurdle that must be overcome before any further progress can be made.
Since President Trump’s return to power, his administration has consistently pursued an aggressive trade strategy, openly aimed at boosting Treasury revenues and encouraging the reshoring of American industries. This approach, however, has frequently led to friction with trading partners globally, and the recent Supreme Court ruling has only added another layer of complexity to these ongoing disputes. The European Union’s decision to suspend the trade deal underscores the precarious nature of international trade agreements when unilateral actions and legal challenges disrupt established frameworks. The path forward for the EU-US trade relationship remains uncertain, contingent on de-escalation and a renewed commitment to agreed-upon terms from both sides of the Atlantic.
