EU Delays US Trade Deal Approval Amid Tariff Uncertainty

The European Union is reportedly taking steps to suspend the ratification of its trade agreement with the United States due to uncertainties surrounding new tariff policies announced by President Donald Trump. The EU's lead trade negotiator, Zeljana Zovko, stated that they have no choice but to delay the approval process while waiting for more information regarding the Trump administration's plans.

This decision follows President Trump's recent threat to impose a 15% global tariff in reaction to a Supreme Court ruling that deemed previous tariffs under the International Emergency Economic Powers Act illegal. The court ruled that Trump could not use that 1977 legislation to impose such duties. After this ruling, Trump suggested that new legally acceptable tariffs would be determined shortly, stating, "During the next short number of months, the Trump Administration will determine and issue the new and legally permissible tariffs."

The original transatlantic deal, reached in July 2025, aimed to introduce a 15% import tax on many European goods entering the U.S., remove tariffs on American exports to Europe, and involve a commitment from the EU to purchase $750 billion in U.S. energy resources. However, due to the recent developments, Zovko expressed concerns stating that without definitive legal clarity on the newly announced tariffs, the EU could not make sudden decisions.

In light of the uncertainty, senior European officials are convening for an emergency meeting to review the transatlantic deal. Bernd Lange, the chair of the European Parliament’s trade committee, characterised the situation as “pure customs chaos on the part of the U.S. government.” He indicated plans to suspend legislative approval of the trade agreement until comprehensive legal assessments and clear commitments from the U.S. are presented.

Lange raised questions about whether the new tariffs issued under Section 122 of the Trade Act of 1974 would breach the agreed terms of the European-U.S. agreement, highlighting a lack of assurance regarding U.S. compliance with the deal.

The European Commission, which governs trade policies for the EU’s 27 member states, is also demanding clarity from Washington about the next steps concerning tariffs. In a statement, the Commission noted that the current situation hampers efforts to achieve equitable and mutually advantageous trade relations, as both sides had previously agreed.

The executive arm of the EU underscored its unwillingness to concede to an increase in U.S. tariffs, referencing the hard-earned agreement that had been established. They maintained that “A deal is a deal,” emphasizing the importance of adherence to commitments made in the Joint Statement agreed upon by both the U.S. and the EU.

In an attempt to assure stakeholders, U.S. Trade Representative Jamieson Greer remarked that his country expects to uphold agreements with the EU, indicating an ongoing dialogue. He stated, "I haven't heard anyone yet come to me and say, the deal's off. They want to see how this plays out. I’m in active conversations with them on it."

The uncertainty regarding the trade deal re-emerged earlier this year after Trump threatened to impose tariffs on European allies opposed to his campaign to annex Greenland, a threat he later retracted. The situation remains fluid, and both sides express a desire to restore stability and predictability in their trade relationship while addressing the looming tariff issues.