Following the tariff ruling in the United States and new announcements from President Donald Trump, a trade agreement between the EU and the United States from last year is now on ice. The responsible members of the European Parliament decided on Monday to pause their work on implementing the agreement. Parliament will not vote for the time being on abolishing EU tariffs on US industrial products. The EU Commission has demanded clarification from Washington.
The United States Supreme Court declared most of the tariffs imposed by Trump unlawful on Friday. The emergency law invoked by Trump does not authorize the president to impose tariffs, the judges ruled. Congress is responsible for this authority, according to the court decision. The US Customs Authority announced Sunday evening that it would no longer collect the tariffs starting Tuesday.
However, Trump announced new special tariffs based on a different law. On Friday, he initially imposed a surcharge of ten percent on goods from around the world, which is set to take effect Tuesday. On Saturday, Trump spoke of 15 percent tariff but has not yet formally ordered the increase. The Supreme Court ruling is "ridiculous" and "stupid," Trump declared Monday on his online platform Truth Social.
The US president triggered uncertainty with his announcements. More information from Washington is needed "so that we can fully understand the complete picture," said a spokesman for the EU Commission on Monday. The new surcharge is likely to apply in addition to existing tariffs that existed before Trump took office.
The effective tariff rate would then be higher than 15 percent, which would constitute a breach of the trade agreement that the EU and the United States concluded last summer. This agreement remains the "top priority," declared EU Trade Commissioner Maros Sefcovic on Monday after a video conference of G7 trade ministers. He will remain in contact with the US government "to obtain assurances."
The United States pledged a tariff rate of 15 percent last August. In return, the EU promised to abolish tariffs on US industrial products. However, the EU has not yet fulfilled its own promise. The European Parliament is currently negotiating the implementation, and the members have now put this work on hold.
"Nobody knows what will happen next," said the chairman of the Trade Committee in the European Parliament, Bernd Lange from the SPD, during a session in Brussels. It remains unclear whether the United States will adhere to the agreement from last year. Implementation on the European Parliament's side will be postponed but not cancelled, Lange emphasized: "We are sticking to the deal, but the deal must be respected."
The responsible members from the Conservatives, Liberals, and Greens also spoke in favor of not deciding on the abolition of tariffs for the time being. "The basis of trust is lacking to simply wave through the implementation of the US deal now," explained Green MEP Anna Cavazzini. Even without an interruption, the negotiations would have taken several more months. Further negotiations in the Trade Committee as well as with the 27 EU countries would still be necessary.
The economist and advisor to Federal Finance Minister Lars Klingbeil from the SPD, Jens Südekum, sees the agreement facing complete collapse. "The tariff deal is now history for the time being," he told The Pioneer portal. "If the underlying measure was illegal, then the foundation has been factually removed from this deal."
Business associations, however, warned against deterioration for companies. "The EU's agreement with the United States from August 2025 is the standard, and we must not fall behind its conditions," declared the president of the Federation of German Industries, Peter Leibinger.
The frozen implementation of the trade deal creates a complex situation for transatlantic trade relations. While the European Parliament maintains its willingness to uphold the agreement terms, the uncertainty surrounding US tariff policy following the Supreme Court ruling and Trump's subsequent announcements has made immediate progress impossible. The EU Commission continues to seek clarification from Washington regarding the legal status and future direction of American tariff measures.
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