EU Lawmakers Pause Transatlantic Trade Agreement
Lawmakers in Brussels, Belgium, have announced a halt to the ratification process of a significant trade agreement with the United States. The decision, made on February 24, 2026, comes in the wake of a US Supreme Court ruling that struck down previous tariffs and subsequent declarations by US President Donald Trump regarding new global import duties. European officials are now demanding clarity and predictability in transatlantic trade relations.
Supreme Court Invalidates Previous Tariffs
The catalyst for the current trade uncertainty was a US Supreme Court decision on February 20, 2026. The Court ruled 6-3 that President Trump had exceeded his authority by imposing tariffs under the International Emergency Economic Powers Act (IEEPA). The ruling affirmed that the power to impose tariffs is primarily reserved for Congress under Article I of the US Constitution. This decision invalidated a significant portion of the tariff regime that had been in place throughout 2025.
New Tariffs Spark Transatlantic Uncertainty
Immediately following the Supreme Court's ruling, President Trump announced his intention to impose new global tariffs. Initially set at 10%, the proposed global import tax was subsequently raised to 15%. President Trump cited Section 122 of the Trade Act of 1974 as the new legal basis for these levies. This move has directly impacted the 'Turnberry deal,' a trade agreement struck between the EU and the US in July/August 2025. That agreement had established a 15% tariff cap on most European goods entering the United States, in exchange for reduced tariffs on US industrial exports. Bernd Lange, Chair of the European Parliament's International Trade Committee, stated that the new 15% global tariff, if applied on top of existing duties, would exceed the agreed-upon ceiling, constituting a 'clear departure from the terms of the Turnberry deal' and creating 'pure tariff chaos.'
Brussels Demands Clarity and Predictability
In response to the evolving situation, EU lawmakers have put legislative work on the trade deal on hold, postponing a scheduled vote on its ratification. The European Commission and various EU officials have emphasized the need for 'full clarity, stability and legal certainty' from the US administration. Olof Gill, spokesperson for the European Trade Commission, reiterated the EU's firm stance with the statement, 'A deal is a deal.' EU Trade Commissioner Maroš Šefčovič has been in contact with his US counterparts, who reportedly reassured him that Washington stands by the deal, though acknowledging a 'transitional period' as the US navigates the court ruling. However, the EU has made it clear that it will not accept an increase in US tariffs beyond the previously agreed ceiling.
The current pause underscores the EU's commitment to protecting its economic interests and maintaining a stable and predictable transatlantic trading environment. The future of the Turnberry deal now hinges on the United States' ability to provide the requested clarity regarding its tariff policy.
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