The EU is set to freeze US trade deal approval over Trump tariff risk
TL;DR
The EU plans to freeze approval of a US trade deal due to uncertainty over Trump's tariff policies, with the European Parliament delaying ratification until the US provides clear commitments. This move follows Trump's shifting tariffs and raises concerns about the deal's enforceability, potentially impacting the $2 trillion transatlantic trade relationship.
The EU is set to freeze US trade deal approval over Trump tariff risk
EU Considers Freezing U.S. Trade Deal Approval Amid Trump Tariff Uncertainty
The European Parliament is poised to delay ratification of the U.S.-EU Turnberry Agreement amid growing concerns over President Donald Trump’s shifting tariff policies. Following the U.S. Supreme Court’s invalidation of Trump’s emergency tariff authority, the European Parliament’s trade committee chair, Bernd Lange, announced plans to propose a suspension of legislative work on the deal until the U.S. provides "comprehensive legal assessment and clear commitments". The move reflects heightened uncertainty after Trump announced a new 15% global tariff, invoking Section 122 of the 1974 Trade Act, which permits temporary tariffs without congressional approval.
The Turnberry Agreement, finalized in July 2025, established a 15% tariff on 70% of EU exports to the U.S. while eliminating tariffs on American industrial goods. The EU agreed to maintain 50% tariffs on U.S. steel and aluminum imports, aiming to avoid a trade war and preserve transatlantic security cooperation. However, Trump’s recent tariff shifts—initially 10%, then 15%—have raised questions about the deal’s enforceability. French Foreign Minister Jean-Noel Barrot stated, "One may be permitted to doubt" the agreement’s validity, while EU Trade Commissioner Maroš Šefčovič emphasized the need for "full clarity on U.S. commitments".
The European Commission warned that Trump’s actions risk undermining "fair, balanced, and mutually beneficial" trade, with potential retaliatory measures under the EU’s Anti-Coercion Instrument—a tool allowing restrictions on trade and investment from countries deemed to exert undue pressure according to EU officials. Meanwhile, U.S. Trade Representative Jamieson Greer asserted that the deals remain intact, arguing they were not contingent on the Supreme Court’s ruling.
The EU’s $2 trillion transatlantic trade relationship now faces renewed volatility, with European markets reacting nervously to the policy shifts. As the European Parliament prepares an emergency meeting, political divisions persist: the European People’s Party opposes delays, while Greens advocate for a pause. The outcome could reshape global trade dynamics, with implications for supply chains, investor confidence, and U.S.-EU economic ties.
