US illegal tariff ruling advances EU Parliament's suspension of trade agreements

Following the Supreme Court ruling in the United States, the European Parliament is accelerating efforts to consider freezing trade agreements with the U.S. On February 22, Bernd Lange, Chair of the European Parliament’s International Trade Committee, expressed on social media his intention to propose a temporary suspension of the approval process for EU-U.S. trade agreements in response to the U.S. government’s broad tariff policies being deemed illegal.

Supreme Court Ruling Triggers Action

The background of this suspension proposal is a judicial decision in the U.S. The U.S. Supreme Court pointed out issues with the legality of the U.S. government’s tariff policies. This ruling has led to increased caution among European stakeholders regarding the handling of trade agreements with the U.S. The Jin10 report states that Chairman Lange considers this “confusion” as a reason not to rush the approval of the agreement.

Lange to Officially Propose Suspension

On February 23, Chairman Lange plans to formally propose that the European Parliament suspend the approval process for the trade agreement until clear commitments are obtained from the U.S. He emphasizes that until the U.S. legal stance becomes clear and proper assessments are completed, the EU should proceed cautiously. This suspension strategy is not merely to buy time but is a tactical move to verify the stability of U.S. policies.

Legal Certainty Is Essential

The EU-U.S. trade agreement signed in July 2025 includes provisions for the U.S. to impose a 15% tariff on imports from the EU. Given this high tariff level and the current situation where U.S. policies have been deemed illegal, there is little urgency for the EU to ratify the agreement. Chairman Lange’s rationale for proposing suspension is that the EU should hold its position until sufficient legal certainty and regulatory clarity are achieved from the U.S. side. This approach also signals the EU’s intention to maintain control in trade negotiations.