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EU Freezes Trade Deal Approval With US After SC's Tariff Verdict

The European Parliament was to vote on the deal on Tuesday, but it has now been effectively scrapped.

EU Freezes Trade Deal Approval With US After SC's Tariff Verdict

European Parliament on Monday has put on hold its trade deal with United States after the Supreme Court ruling cast doubt over the validity of the 2025 agreement.

The Supreme Court last week ruled that some of the tariffs imposed in 2025 by Washington were illegal. However, in retaliation US President Donald Trump announced 10% tariffs, which on Sunday he increased to 15%.

The European Parliament had already frozen the deal once after the US President threatened tariffs on several EU countries if they refused to let him acquire Greenland. But the Parliament was to vote on the deal on Tuesday, but it has now been effectively scrapped.

"Clarity and legal certainty are needed before any further steps can be taken," said the Chair of the European Parliament's committee on International Trade, Bernd Lange in a statement on Monday. He further added that a key instrument used on the US side to negotiate and implement the Turnberry Deal is 'no longer available'.

According to Lange the situation is more uncertain than ever and the Members have agreed that the two Turnberry files will be "put on hold until clarity, stability and legal certainty in the EU-US trade relations are re-established."

Separately in a thread on X, he said, "Don't new tariffs based on Section 122 mean a breach of the deal? Regardless, no one knows whether the USA will adhere to it – or even be able to at all."

In July 2025, after weeks of strategising and tariff threats, Commission President Ursula vod der Leyen and Trump finalised the trade deal. The deal locked 15% US tariffs on EU exports, while also granting zero-duty access to most American goods entering the EU. However, many viewed this deal to be lopsided in the European countries.

While EU has paused work on the deal. US President Donald Trump on Monday warned trading partners of 'higher' and 'worse' tariffs if they 'play games' following the Supreme Court's verdict against his sweeping tariffs.

"Any country that wants to 'play games' with a ridiculous supreme court decision, especially those that have 'Ripped Off' the USA for years, and even decades, will be met with a much higher tariff, and worse, than that which they just recently agreed to. BUYER BEWARE!!!," said Trump in a post on Truth Social.

ALSO READ: Trump Threatens 'Higher' And 'Worse' Tariffs On Trading Partners 'Playing Games' After SC Verdict

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