The European Union has halted the ratification process of its trade agreement with the U.S. as it seeks more information on the Trump Administration’s new plans regarding tariffs.
“The situation is now more uncertain than ever. This runs counter to the stability and predictability we sought to achieve with the Turnberry deal,” said Bernd Lange, chair of the European Parliament’s trade committee, referencing the U.S.-E.U. trade agreement struck in Turnberry, Scotland, last July.
In light of the uncertainty, the votes scheduled for Tuesday will not take place as planned and the shadow rapporteurs, members of the European parliament that represent different political groups, will “reassess the situation next week.”
The decision from Europe comes after President Donald Trump over the weekend threatened to impose a 15% global tariff after the U.S. Supreme Court decided his sweeping tariffs are illegal, ruling that he cannot rely on the 1977 International Emergency Economic Powers Act (IEEPA) to impose such charges.
“During the next short number of months, the Trump Administration will determine and issue the new and legally permissible tariffs,” said Trump of the new hike. The U.S. President raised the number from the 10% threat he made in the immediate aftermath of the ruling on Friday. He cited his authority under Section 122 of the Trade Act of 1974 when announcing the levies.
But the E.U. is fighting back against the justification for the new tariffs.
“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 E.U. into the U.S. would be subject to an applied rate exceeding the 15% threshold,” said Lange. “This, in itself, constitutes a clear departure from the terms of the Turnberry deal.”
When contacted for comment, the White House directed TIME to a statement Trump made via Truth Social Monday…
