European Parliament calls to suspend EU-U.S. trade deal citing 'tariff chaos'

The European Parliament’s trade chief has urged a temporary suspension of the EU–U.S. trade agreement approval, citing “tariff chaos” following President Donald Trump’s new 15% tariffs and a U.S. Supreme Court ruling invalidating his previous global tariff programme.

Bernd Lange, chair of the European Parliament’s Committee on International Trade, said on Sunday that he will propose formally pausing the ratification of the trade deal until clarity and legal certainty are provided by the U.S. He plans to submit the proposal on Monday, emphasising that further steps should be delayed until the U.S. makes clear commitments.

The European Commission had demanded earlier that the United States honour the terms of last year’s EU–U.S. trade agreement.

The Commission, which negotiates trade policy for the 27 EU member states, said Washington must provide “full clarity” on its next steps, stressing that “a deal is a deal” and warning that unpredictable tariffs undermine confidence in global markets.

On Friday (20 February), the Supreme Court ruled 6-3 that Trump had exceeded his authority in imposing sweeping tariffs under an economic emergency law.

Within hours, the president announced a temporary 10% tariff on nearly all imports, before raising it to 15% on Saturday, the maximum permitted under Section 122 of U.S. trade law without extended congressional approval.

Last year’s EU-U.S. agreement set a 15% U.S. tariff rate for most EU goods, with exemptions for certain sectors such as aircraft and spare parts, while the EU agreed to lift duties on many American products and suspend retaliatory measures.

The Commission said EU products must continue to benefit from the “most competitive treatment” under the agreed ceiling and confirmed that EU Trade Commissioner Maroš Šefčovič had discussed the issue with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.

• Trump says he will raise global tariff rate from 10% to 15%
• Trump to visit China next month as U.S. tariffs take centre stage

Despite the court ruling, Trump signalled he would continue pursuing alternative legal avenues to impose tariffs, saying he would use the 150-day window under Section 122 to develop other “legally permissible” trade measures.

 

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