Supreme Court Ruling Shakes Foundations of Deal
European Parliament negotiators have suspended progress on the EU-US trade agreement after a US Supreme Court ruling cast doubt on key elements of the 2025 pact. The court found that some tariffs imposed by President Donald Trump were illegal, arguing he had exceeded his authority by acting without Congressional approval under emergency powers.
In response, Trump announced fresh 15% duties on imports, further complicating the future of the agreement. German MEP Bernd Lange, who chairs Parliament’s trade committee, said the legal landscape had “totally changed,” making it impossible to move forward without clear assurances from Washington.
Parliament Demands Clarity from Washington
The trade deal, brokered in July 2025 by European Commission President Ursula von der Leyen and Trump after weeks of tense negotiations, had already faced criticism in Europe for favoring the United States. It locks in 15% US tariffs on EU exports while allowing most American goods to enter the bloc duty-free.
The European Parliament, which must approve the deal before it takes effect, had been set to vote this week. That vote has now been scrapped. Lawmakers want firm guarantees that Washington will honor the agreement long term before resuming the ratification process.
Diplomatic Efforts to Contain the Fallout
EU Trade Commissioner Maroš Šefčovič held urgent talks with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer over the weekend. He also consulted with G7 counterparts in an effort to stabilize the situation after Washington’s latest tariff announcement.
Šefčovič stressed that clarity over how the 15% tariff framework would be applied is essential, insisting that “a deal is a deal” and must be respected. He expressed hope that Parliament could still vote on the agreement during its March plenary session.
Since returning to office, Trump has pursued an assertive trade agenda aimed at reviving domestic industry and increasing federal revenue. However, the Supreme Court’s intervention has injected fresh uncertainty into US trade policy, leaving the future of the EU-US agreement hanging in the balance.
