Faced with Trump's warning to the EU to use the delaying tactic, the European Parliament halts related votes on US-EU trade agreements

After the U.S. Supreme Court overturned most of its global tariffs from last year, President Trump issued a warning to trade partners not to violate existing trade agreements. The European Union, on the other hand, is delaying approval, seeking to clarify tariff details before considering the agreement reached last year. This adds new uncertainty to the already turbulent transatlantic economic and trade relations.

According to reports, on Monday, the 23rd, members of the European Parliament decided to suspend legislative proceedings related to the US-EU trade agreement. European Parliament International Trade Committee Chair Lange stated at Monday’s meeting:

“We want to understand the situation clearly. We want the U.S. to explicitly confirm that they respect this agreement because it is crucial.”

Earlier on Monday, Xinhua News Agency reported that the spokesperson for the European Parliament International Trade Committee, Lifeng Kosein, said that the voting process on documents related to the US-EU trade agreement “is very likely to be delayed,” and the process will be postponed at least.

Also on Monday, Trump posted on his social media warning that any country trying to “play tricks” with the Supreme Court’s “ridiculous ruling,” especially those that have “extorted” the U.S. for years or even decades, will face tariffs higher than their recently claimed consent to tariffs, with more severe consequences. Due to trade tensions, major European and American stock indices fell on Monday.

This latest development comes amid significant changes in U.S. tariff policy. Xinhua News Agency reported that the U.S. Supreme Court recently ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs on a large scale. Subsequently, President Trump announced plans to impose a 15% tariff on goods from all countries and regions, increasing global trade uncertainty once again.

U.S. to Suspend IEEPA-Based Tariffs Starting Tuesday

According to CCTV News, last Friday, the U.S. Supreme Court ruled that the Trump administration’s large-scale tariffs implemented under the IEEPA lacked clear legal authorization. This ruling overturned most of the global tariffs imposed by the Trump administration last year, including the so-called reciprocal tariffs and fentanyl tariffs.

Hours after the ruling was announced, Trump immediately announced he would use alternative legal tools to impose an additional 10% global tariff for 150 days, becoming the first U.S. President to impose tariffs under Section 122 of the Trade Act of 1974. On the 21st, Trump further increased the rate from 10% to 15%.

On Monday, Trump reiterated on social media that the new tariffs do not require further congressional approval, stating, “As President, I do not need to seek approval from Congress for tariffs,” and that “the Supreme Court’s ruling also reaffirmed this.”

U.S. Customs and Border Protection (CBP) announced on Monday (Eastern Time) that starting at 12:01 a.m. Tuesday, it will cease collecting tariffs imposed under the IEEPA. The agency will revoke all tariff codes associated with Trump’s previous IEEPA-related orders.

Trump’s administration faces the risk of substantial refunds due to the ruling.

Last Friday, CCTV mentioned that, according to economists using the University of Pennsylvania Wharton’s predictive models, tariffs imposed under the IEEPA have exceeded $175 billion. After such tariffs are deemed illegal, the government may need to refund $175 billion in tariffs.

U.S. Treasury Secretary Yellen also stated last Friday that federal tariff revenue is closer to $130 billion, not the $175 billion suggested by the model. She expects this year’s tariff revenue to remain “roughly unchanged,” with tariffs returning to previous levels but in a more complex manner.

EU Demands “Full Transparency” on Tariff Policies

The EU has expressed concern over the dramatic changes in U.S. tariff policies.

According to CCTV News, on Monday, the chief negotiator for the European People’s Party (EPP) responsible for US-EU trade agreement negotiations, Zelianna Zovko, said that the EU “has no choice but to delay the approval process” to seek clarity on the current situation. The European Parliament’s International Trade Committee was scheduled to hold a meeting on the 24th to vote on legislative proposals to advance the approval of the trade agreement.

Reports indicate that EU Commission spokesperson Olov Gyll said on Monday, “Fully understanding what these new changes mean for US-EU trade relations is the absolute minimum requirement for us to make a clear assessment and decide on next steps. We need more information to see the full picture.”

Lange previously criticized the U.S. government’s tariff policy as “a mess,” stating that only unresolved issues and increasing uncertainty remain between the EU and the U.S. and other trade partners. He said that the legal basis of the US-EU trade agreement has changed, and he will propose to the European Parliament’s negotiating team to suspend legislative work.

The EU Commission issued a strongly worded statement on Sunday, demanding Washington honor the terms of the US-EU trade agreement reached last year and provide “full transparency” regarding the steps it plans to take following the Supreme Court’s ruling. The statement said: “The current situation is unfavorable for achieving the ‘fair, balanced, and mutually beneficial’ transatlantic trade and investment that both sides agreed upon. What was agreed upon is what was agreed upon.”

U.S. Trade Representative Says No Country Will Exit the Agreement

Despite EU concerns, U.S. officials insist the trade agreement remains valid.

Last Sunday, U.S. Trade Representative Griell told the media that he had spoken with officials from the EU and would talk with officials from other countries. Griell said, “I haven’t heard anyone come to me saying the agreement has been canceled. They want to see how things develop.”

Griell reaffirmed that the U.S. will adhere to the agreements reached, including the one with the EU, and expects trade partners to do the same. He also stated on another media program that the Trump administration will use other legal tools to rebuild trade policies, including Section 301 on unfair trade practices and Section 232 on national security, both of which have withstood legal challenges.

Griell indicated that the Office of the U.S. Trade Representative has launched Section 301 investigations into countries like Brazil and expects to initiate new investigations into overcapacity in industries, which will involve many Asian countries and products like rice that are heavily subsidized by some nations. It remains unclear whether the tariffs negotiated and agreed upon will exempt these countries from facing new tariffs due to the investigations.

Uncertain Outlook for Trade Agreements

The US-EU trade agreement was reached in July 2025 but has never been fully implemented. Under the agreement, the EU was to remove tariffs on U.S. industrial goods and provide preferential market access for U.S. seafood and agricultural products in exchange for a 15% tariff on most EU exports to the U.S. The U.S. also indicated it would maintain a 50% tariff on European steel and aluminum imports.

Media believe that the EU’s insistence on this agreement aims to avoid a full-scale trade war with the U.S. and to retain U.S. support for European security, especially regarding Ukraine. However, the U.S. quickly expanded the 50% metal tariffs to hundreds of other products, provoking anger among EU lawmakers and officials. The European Parliament did not swiftly approve the agreement, leading to only partial implementation.

Trump’s threats to seize Greenland further pressured the agreement, causing the European Parliament to freeze the approval process in January.

In January, the EU even considered imposing tariffs worth €93 billion (about $110 billion) on U.S. goods. After reaching an agreement with the U.S. and Trump’s concessions on Greenland, the EU abandoned this plan. The European Parliament resumed approval procedures, aiming for full ratification in March.

Reports indicate that G7 trade ministers held a phone conference on Monday. EU Trade Commissioner Valdis Dombrovskis emphasized on social media that “fully respecting” the US-EU trade agreement is “crucial.” Later Monday, EU ambassadors will meet to discuss trade relations with the U.S.

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