European Union To Likely Freeze US Trade Deal After SC Ruling On Trump's Tariffs

Last Updated:February 23, 2026, 17:17 IST

European Parliament will freeze the US trade deal after the SC struck down Trump's tariffs, causing uncertainty for EU partners. Bernd Lange seeks legal clarity from Washington.

The European Union lawmakers in Monday said they will put on hold the key trade deal with Washington after the US Supreme Court struck down President Donald Trump’s tariffs.

According to AFP, the European Parliament negotiators will meet on Monday to formally agree to freeze plans to approve the deal agreed last year.

Bernd Lange, chairman of the parliament’s trade committee, said he will propose suspending the legislative work on the deal “until we have a comprehensive legal assessment and clear commitments from the US."

“Pure customs chaos on the part of the US government," Lange wrote on social media Sunday. “Nobody can make sense of it anymore – only unanswered questions and growing uncertainty for the EU and other US trading partners."

Also Read: US Supreme Court Strikes Down Trump’s Tariffs: ‘Illegal Without Congressional Authorisation’

According to Bloomberg, the deal struck last summer between Trump and European Commission President Ursula von der Leyen would impose a 15% tariff rate on most EU exports to the US while removing tariffs on American goods heading into the bloc.

The bloc had then agreed to the deal to avoid a full-blown trade war with Washington and retaining US security backing, particularly with regards to Ukraine. Parliament had been aiming to ratify the agreement in March.

Also Read: Deemed Illegal By Court, US Customs To Stop Collecting Trump Tariffs From Tomorrow

This comes after the US Supreme Court on Friday last week ruled that President Donald Trump violated federal law when he unilaterally imposed sweeping tariffs on several countries, marking a major setback to Trump’s aggressive trade policies with wide-ranging implications for the global economy.

Chief Justice John Roberts wrote the majority opinion on the matter, and the court agreed 6-3 that the tariffs – which raised duties as high as 50% on key trading partners like India and Brazil – exceeded the law. “We hold that IEEPA does not authorise the president to impose tariffs," Roberts wrote.

“The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope," Roberts wrote.

However, the Trump administration “points to no statute" in which Congress has previously said that the language in the International Emergency Economic Powers Act (IEEPA) could apply to tariffs, he said.

“In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorisation to exercise it," the Chief Justice remarked. He noted that any “extraordinary assertion" of such power requires “clear congressional authorisation", which Trump did not have.

The Supreme Court verdict came days after the Trump administration faced a setback in the House of Representatives when three Republicans crossed party lines to vote with Democrats in a bid to block an effort from Trump to shield his tariffs from Congressional challenges.

Previously, Trump’s tariffs were met with strong criticism, particularly from Democrats, who argued that the president had no authority to impose tariffs, as it is traditionally reserved for Congress under the US Constitution. Several lower courts ruled that the tariffs exceeded presidential authority.

After the SC ruling, the EU commission said: “A deal is a deal. As the United States’ largest trading partner, the EU expects the US to honour its commitments set out in the Joint Statement — just as the EU stands by its commitments."

“In particular, EU products must continue to benefit from the most competitive treatment, with no increases in tariffs beyond the clear and all-inclusive ceiling previously agreed," it added.

The commission added that EU Trade Commissioner Maroš Šefčovič spoke with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick on Saturday.

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