European Parliament Delays Vote on EU-U.S. Trade Deal Amid Legal and Policy Uncertainties

The European Parliament has once again postponed its vote on the EU-U.S. trade agreement, a decision influenced by recent developments in U.S. trade policy and legal rulings. This marks the second suspension of the vote, reflecting the growing complexities in transatlantic trade relations.

In July 2025, the European Union and the United States reached a trade agreement at President Donald Trump’s Turnberry golf course in Scotland. The deal required the EU to eliminate import duties on numerous U.S. products, while the U.S. maintained a 15% tariff on most EU goods. This agreement aimed to prevent a potential trade war and foster economic cooperation between the two entities.

However, the landscape shifted dramatically when the U.S. Supreme Court ruled that President Trump’s use of emergency powers to impose global tariffs was unconstitutional. In response, President Trump announced a new 15% global tariff, citing alternative legal provisions. This move has introduced significant uncertainty into the trade agreement’s future.

Bernd Lange, Chair of the European Parliament’s Trade Committee, expressed concerns over the evolving situation, stating, “It’s clear the legal basis has totally changed and we have the introduction of new tariffs which are totally different than the old tariffs.” He emphasized the need for a clear commitment from the United States to honor the existing deal and provide a stable framework for future trade relations.

The European Parliament had previously suspended its work on the trade deal in January 2026, following President Trump’s threats to impose tariffs on European countries opposing his plans to acquire Greenland. Although the process resumed later, the recent developments have led to renewed apprehension among EU lawmakers.

Many members of the European Parliament have criticized the trade deal as being unbalanced, noting that while the EU is required to eliminate most import duties, the U.S. retains a broad 15% tariff. Despite these concerns, there was a willingness to proceed with the agreement, provided certain conditions were met, such as implementing an 18-month sunset clause and measures to address potential surges in U.S. imports.

Given the current uncertainties and the potential for further tariff escalations, the European Parliament has deemed it prudent to delay the vote on the trade agreement. This decision underscores the need for clarity and stability in transatlantic trade relations, as both parties navigate the complexities introduced by recent legal and policy changes.