🇪🇺🇺🇸 EU Pauses Vote on U.S. Tariff Deal Amid Legal Chaos in Washington

🇪🇺🇺🇸 EU Pauses Vote on U.S. Tariff Deal Amid Legal Chaos in Washington

CMB News | Trade & Policy | February 2026

The European Parliament has temporarily halted its work on implementing last year’s tariff agreement with the United States following fresh legal and political uncertainty in Washington. A planned vote on eliminating EU tariffs on U.S. industrial goods has been suspended pending clarification from the U.S. administration.

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⚖️ U.S. Supreme Court Strikes Down Trump Tariffs

The development follows a ruling by the U.S. Supreme Court declaring most of President Donald Trump’s previously imposed tariffs unlawful. The Court ruled that the emergency powers law invoked by Trump does not authorize the president to impose tariffs — authority rests with Congress.

As a result:

• U.S. Customs initially announced it would cease collecting the tariffs.

• Trump responded by announcing new “special tariffs” under a different legal basis.

• Proposed new tariffs: initially 10%, later raised to 15% on global imports.

Trump sharply criticized the ruling, calling it “ridiculous” and “anti-American,” creating further uncertainty for trade partners.

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🇪🇺 EU Seeks Clarification Before Proceeding

The European Commission has demanded explanations from Washington, stating that more information is needed to understand the full scope and legal basis of the new tariff announcements.

An EU spokesperson emphasized that both European and American businesses require:

• Stability

• Predictability

• Legal clarity

Uncertainty persists over:

• The exact implementation date of new U.S. tariffs

• Whether they will apply in addition to pre-existing duties

• The effective final tariff rate (which could exceed 15%)

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🏛 Political Reaction in Brussels

The Chair of the European Parliament’s Trade Committee, Bernd Lange, described the situation as “pure tariff chaos” from the U.S. side.

The 2025 agreement between the EU and U.S. included:

• A 15% U.S. tariff ceiling

• In exchange for the EU eliminating tariffs on U.S. industrial products

However, the EU has not yet implemented its side of the agreement, as parliamentary approval and negotiations with member states were still ongoing.

Now, lawmakers from across party lines — including conservatives, liberals, and Greens — support pausing the ratification process until the Commission clarifies the new U.S. conditions.

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📉 Is the Deal Dead?

German economist Jens Südekum, adviser to Finance Minister Lars Klingbeil, said the deal may effectively be void:

“If the underlying tariff measure was unlawful, the deal has lost its foundation.”

Meanwhile, business associations warned against abandoning the agreement entirely.

The President of the Federation of German Industries (BDI), Peter Leibinger, stressed that:

“We must not fall below the conditions agreed in August 2025.”

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🔎 CMB Assessment

The transatlantic tariff agreement is now in a legal and political grey zone.