Europe Delays Vote on EU/U.S. Trade Deal

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The European Parliament has postponed voting on last year's key European Union/U.S. trade deal after President Donald Trump's tariffs were ruled illegal by the U.S. Supreme Court.

Europe Pauses Trade Vote

Europe has pressed pause on a vote to ratify the wide-ranging European Union (EU)/U.S. Trade Deal agreed last year following threats by U.S. President Donald Trump to impose a global 15% tax after the U.S. Supreme Court ruled that his tariffs are illegal. 

The wide-ranging trade deal was agreed at the last minute in July to avoid a 30% tariff on a range of EU goods and includes a three-year commitment by Europe to buy US$750 billion worth of U.S. oil and gas--including liquefied natural gas (LNG)--alongside nuclear fuel and semiconductors. For additional information, see July 29, 2025, article - Europe Seals 'Last-Minute' Tariff Deal with U.S. The U.S. Supreme Court ruled that the Trump Administration could not rely on the 1977 International Emergency Economic Powers Act (IEEPA) to impose his sweeping tariffs. The IEEPA is central to the EU/U.S. tariff accord, also known as the Turnberry Deal. In response to losing the Supreme Court verdict, Trump announced a global tariff of 10% under Section 122 of the 1974 Trade Act, which allows him to levy the charge for 150 days without the support of Congress. He also threatened to boost it to 15%. 

Parliament's Hesitation

Bernd Lange, chair of the European Parliament's International Trade Committee and standing rapporteur for the U.S., stated: "The ruling by the Supreme Court of the United States of 20 February 2026 on the use of the International Emergency Economic Powers Act (IEEPA) is clear and unequivocal. Its implications cannot be ignored, and business as usual is not an option. Consequently, the scheduled votes in committee tomorrow will not take place as planned and the shadow rapporteurs will reassess the situation next week.  A key instrument used on the U.S. side to negotiate and implement the Turnberry Deal is no longer available. The situation is now more uncertain than ever. This runs counter to the stability and predictability we sought to achieve with the Turnberry Deal. The proposed replacement for IEEPA, Section 122, applies indiscriminately to all countries exporting to the United States and is imposed on top of the Most Favoured Nation (MFN) rate. As a result, imports from the EU into the US would be subject to an applied rate exceeding the 15% threshold. This, in itself, constitutes a clear departure from the terms of the Turnberry Deal."

Global Concern

The global 10% tariff, which is now in force, and the threat of an increase to 15%, has caused widespread concern around the world. The European Commission (EC) is seeking clarity on the tariff situation following the court decision and the subsequent actions of the Trump Administration. "A deal is a deal," the Commission stated. "As the United States' largest trading partner, the EU expects the U.S. to honour its commitments set out in the Joint Statement--just as the EU stands by its commitments. The current situation is not conducive to delivering 'fair, balanced, and mutually beneficial' transatlantic trade and investment, as agreed to by both sides and spelled out in the EU-U.S. Joint Statement of August 2025. The Commission will always ensure that the interests of the European Union are fully protected. EU companies and exporters must have fair treatment, predictability, and legal certainty."

Japan has urged the U.S. to ensure fair treatment and to honour last year's agreements. Trade Minister Ryosei Akazawa has asked for assurances that new tariff measures will not result in harsher conditions than those agreed in last year's bilateral trade agreement. Donald Trump announced a trade deal with Japan last summer, which he claimed would see US$550 billion invested into the U.S. after agreeing to cut a proposed 25% tariff on Japanese goods to 15%. 

Key Takeaways

• Europe has postponed a vote to ratify the wide-ranging European Union (EU)/U.S. Trade Deal.
• U.S. Supreme Court rules that President Trump's sweeping tariffs are illegal.
• President Trump enacts new tariffs globally, causing major trade concerns.

IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).