EU freezes trade deal with US after Supreme Court tariff ruling
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The European Parliament has put on hold its trade deal with the United States after a Supreme Court ruling cast doubt over the validity of the 2025 agreement.
Last week, the Supreme Court ruled that some tariffs imposed in 2025 by Washington were illegal.
In response, US President Donald Trump announced 10 percent tariffs, which he increased to 15 percent on Sunday.
The European Parliament had previously frozen the deal after Trump threatened tariffs on several EU countries if they refused to let him acquire Greenland. The Parliament had been scheduled to vote on the agreement on Tuesday, but the process has now been effectively scrapped.
“Clarity and legal certainty are needed before any further steps can be taken,” said Bernd Lange, Chair of the European Parliament’s Committee on International Trade, in a statement on Monday. He added that a key instrument used on the US side to negotiate and implement the Turnberry Deal is no longer available.
Lange said the situation is more uncertain than ever and that members agreed the two Turnberry files would be put on hold until clarity, stability, and legal certainty in EU-US trade relations are reestablished.
In a thread on X, he questioned whether new tariffs based on Section 122 would breach the deal and said no one knows whether the United States will adhere to it or even be able to.
In July 2025, after weeks of strategising and tariff threats, Commission President Ursula von der Leyen and Trump finalised the deal. It locked in 15 percent US tariffs on EU exports while granting zero-duty access to most American goods entering the EU. The agreement was widely viewed in Europe as lopsided.
On Monday, Trump warned trading partners of higher tariffs if they “play games” following the Supreme Court verdict.