In response to Trump’s warning that the EU is using delay tactics, the European Parliament has suspended votes related to the US-Europe trade agreement.
```
After the U.S. Supreme Court overturned most of last year’s global tariffs, U.S. President Trump issued a warning to trade partners not to violate already agreed trade deals. The European Union has launched a delaying tactic, saying it will clarify tariff details before considering approval of the deal reached last year. This adds new uncertainty to the already turbulent transatlantic economic and trade relations.
According to reports, on Monday the 23rd local time, members of the European Parliament decided to suspend legislative proceedings related to the EU-U.S. trade agreement. Bernd Lange, chairman of the European Parliament’s International Trade Committee, said at Monday’s meeting:
“We want to understand the situation clearly. We want the U.S. side to make it unequivocal that they respect this agreement, because it is crucial.”
Earlier on Monday, Xinhua News reported that Lifen Kossein, news officer for the European Parliament’s International Trade Committee, said the voting procedures surrounding documents related to the EU-U.S. trade agreement “are likely to be delayed,” and the relevant proceedings will be postponed at least for now.
Also on Monday, Trump posted on his social media warning that any country trying to “play tricks” using the Supreme Court’s “ridiculous ruling,” especially those that have “extorted” the U.S. for years or decades, would face tariffs “much higher” than their recent so-called agreed tariffs, and “the consequences will be even more severe.” Affected by trade tensions, major U.S. and European stock indexes dropped collectively on Monday.
This latest development comes amid significant changes in the U.S. tariff policy. According to Xinhua, the U.S. Supreme Court recently ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose large-scale tariffs. Afterwards, President Trump announced a 15% tariff on goods from all countries and regions, further increasing global trade uncertainty.
U.S. to Stop IEEPA-Based Tariffs Starting Tuesday
According to CCTV News, last Friday the 20th local time, the U.S. Supreme Court ruled that the tariffs imposed by the Trump administration under IEEPA lacked clear legal authorization. This ruling overturned most of last year’s global tariffs put in place by the Trump administration, including the so-called reciprocal tariffs and fentanyl tariffs.
A few hours after the ruling was released, Trump announced he would use alternative legal tools to impose a 10% global tariff for 150 days, becoming the first president to impose tariffs under Section 122 of the Trade Act of 1974. On the 21st, Trump further escalated, announcing an increase from 10% to 15%.
On Monday, Trump reiterated on social media that the newly imposed tariffs do not require Congressional authorization, saying, “As President, I don’t need to seek Congressional approval for tariffs,” and “The Supreme Court’s ruling also confirmed this again.”
On Monday, the U.S. Customs and Border Protection (CBP) stated it would stop collecting tariffs based on IEEPA from 0:01 a.m. EST Tuesday. The agency will revoke all tariff codes linked with Trump’s previous IEEPA orders.
The Trump administration now faces the risk of huge tax refunds due to the ruling.
CCTV reported last Friday that, according to estimates from economists using the University of Pennsylvania’s Wharton forecasting model that day, tariffs collected under IEEPA have exceeded $175 billion. After these tariffs were declared illegal, the government may need to refund $175 billion in tariffs.
U.S. Treasury Secretary Bessent said last Friday that federal tariff revenue is closer to $130 billion, not the $175 billion implied by model forecasts. He expects this year’s government tariff income to “remain basically unchanged,” with tariffs returning to previous levels, but enforced in a more complicated way.
EU Demands 'Complete Transparency' in Tariff Policy
The EU has expressed concern over drastic changes in U.S. tariff policy.
According to CCTV News, Zeljana Zovko, chief negotiator for the EU-U.S. trade agreement for the European People’s Party group, said Monday the EU “has no choice” but to delay approval procedures in order to gain clarity on the current situation. The European Parliament’s International Trade Committee was originally scheduled to meet on the 24th to vote on legislative proposals advancing approval of the trade agreement.
According to reports, EU Commission spokesperson Olof Gill said Monday: “Fully understanding what these new changes mean for EU-U.S. trade relations is the absolute minimum requirement for us in the EU to make a clear assessment and decide on next steps. We need more information to grasp the full picture.”
Lange previously criticized the U.S. government’s tariff policy as “a mess,” saying EU and other U.S. trade partners are left only with “unresolved issues and growing uncertainty.” He said the legal basis for the EU-U.S. trade deal has changed and will propose suspending legislative work to the European Parliament negotiation team.
The EU Commission issued a strongly-worded statement on Sunday, demanding Washington abide by the terms of last year’s EU-U.S. trade agreement and provide “complete transparency” regarding steps taken after the Supreme Court ruling. The statement said: “The current situation undermines the achievement of the ‘fair, balanced and reciprocal’ transatlantic trade and investment as agreed by both sides. A deal is a deal.”
U.S. Trade Representative Says No Country Has Withdrawn from Agreement
Though the EU expressed concern, U.S. officials insist the trade deal remains valid.
On Sunday, U.S. Trade Representative Greer said in a media interview he had spoken to EU counterparts and would talk with other country officials. Greer said: “I haven’t heard anyone come to me and say the agreement is canceled. They want to see how things develop.”
Greer reiterated the U.S. would stick to already agreed deals, including with the EU, and expects trade partners to do the same. He said in another media appearance that the Trump administration would use other legal tools to rebuild trade policy, including Section 301 on unfair trade practices and Section 232 on national security, both of which have withstood legal challenges.
Greer added the USTR had launched Section 301 investigations against countries like Brazil, and expects to start new investigations on industrial overcapacity and unfair trade practices regarding goods like rice heavily subsidized by some countries. It is unclear if tariff agreements already negotiated will exempt these countries from new tariffs resulting from these investigations.
Trade Agreement Outlook Bleak
The EU-U.S. trade agreement was reached in July 2025 but has never been fully implemented. Under the agreement, the EU must remove tariffs on U.S. industrial products and provide preferential market access for U.S. seafood and agricultural products, in exchange for the U.S. imposing a 15% tariff on most EU exports to the U.S. The U.S. also said it would maintain a 50% tariff on European steel and aluminum imports.
Media believe the EU insists on the deal to avoid an all-out trade war with the U.S. and retain U.S. support for European security—especially on the Ukraine issue. However, the U.S. quickly expanded the 50% metals tariff to hundreds of other products, enraging EU lawmakers and officials. The European Parliament did not approve the deal quickly, resulting in only partial implementation.
Trump’s threat regarding U.S. acquisition of Greenland added further pressure to the deal, causing the European Parliament to freeze approval procedures for the EU-U.S. trade agreement in January this year.
In January, the EU even considered imposing tariffs on $110 billion (€93 billion) worth of U.S. goods. After reaching an agreement with the U.S. and Trump’s concessions on Greenland, the plan was dropped, and the European Parliament resumed approval efforts, aiming for full approval in March.
Reports say G7 trade ministers held a conference call on Monday, with EU Commissioner for Trade Sefcovic posting on social media that “complete respect” for the EU-U.S. trade agreement is “crucial.” EU ambassadors will meet Monday evening to discuss trade relations with the U.S.
Risk Warning and DisclaimerThe market has risks, investors should be cautious. This article does not constitute personal investment advice and does not take into account the special investment goals, financial situation or needs of individual users. Users should consider whether any views, opinions or conclusions in this article are suitable for their particular circumstances. Investment based on this information is at your own risk. ```