– The European Parliament is considering a suspension of ratification for its recently agreed-upon trade deal with the United States, pending clarification from the Trump administration regarding its evolving trade policy. The move comes in response to the uncertainty created by President Trump’s recent tariff adjustments following a Supreme Court ruling limiting his authority to impose tariffs via emergency powers.
Bernd Lange, chairman of the European Parliament’s trade committee, announced his intention to propose the suspension at an emergency meeting scheduled for Monday, . According to Lange, the legislative process for approving the so-called Turnberry Agreement will be halted “until we have a comprehensive legal assessment and clear commitments from the US.” Lange characterized the current situation as “pure customs chaos on the part of the US government,” expressing concern over the growing uncertainty for the EU and other US trading partners.
The Turnberry Agreement: A Deal Under Strain
The Turnberry Agreement, negotiated last summer between President Trump and European Commission President Ursula von der Leyen, aimed to de-escalate trade tensions between the two economic blocs. The deal proposed a 15% tariff on most EU exports to the US, while simultaneously eliminating tariffs on American goods entering the EU. Critically, the agreement also stipulated that the US would maintain a 50% tariff on European steel and aluminum imports.
The EU initially accepted the lopsided terms of the agreement, hoping to avoid a full-blown trade war with Washington and secure continued US security backing, particularly in relation to the ongoing situation in Ukraine. Ratification had been initially anticipated in March.
Supreme Court Ruling and Subsequent Tariff Actions
The recent decision by the US Supreme Court to strike down President Trump’s use of emergency powers to impose reciprocal tariffs triggered a new wave of tariff announcements from the administration. Initially, a global tariff of 10% was announced, which was subsequently raised to 15% on Saturday, . This escalation has fueled concerns about the stability and predictability of US trade policy.
The EU’s response has been swift. Jean-Noël Barrot, France’s Minister for Relations with Parliament, stated that the validity of the trade agreement is now under review, suggesting that the deal may be reconsidered in light of the latest developments. “One can have doubts about this. And we will take the necessary measures in response,” Barrot said.
EU Calls for Clarity and Commitment
The European Commission has emphasized the importance of clarity regarding the US’s actions, stating that “an agreement is an agreement.” As the largest trading partner of the United States, the EU expects the US to honor its commitments outlined in the Joint Statement accompanying the Turnberry Agreement, just as the EU intends to fulfill its own obligations.
Maroš Šefčovič, the EU’s Commissioner for Trade, has been in contact with US Trade Representative Jamieson Greer and US Secretary of Commerce Howard Lutnick to seek clarification and assurances. The Commission’s statement indicates a desire to maintain the trade agreement but underscores the need for a stable and predictable trading relationship.
Previous Pauses and a History of Trade Friction
This represents not the first time the ratification process for the US-EU trade deal has been paused. Previously, the European Parliament froze the approval process after President Trump threatened to annex Greenland, highlighting the sensitivity of the agreement to unpredictable actions from the US administration. This history of friction underscores the EU’s cautious approach and its determination to protect its economic interests.
Implications for Global Trade and Investment
The potential suspension of the Turnberry Agreement ratification process adds another layer of uncertainty to the global trade landscape. The agreement, while not entirely balanced, represented a significant step towards reducing trade tensions between the US and the EU. A prolonged delay or outright collapse of the deal could lead to increased tariffs, disruptions to supply chains, and a chilling effect on investment.
The situation also raises questions about the future of multilateral trade agreements and the reliability of international trade commitments. The EU’s response signals a growing reluctance to enter into agreements with partners whose trade policies are subject to sudden and unpredictable changes. The coming days will be crucial in determining whether the Turnberry Agreement can be salvaged or whether the US and EU are heading towards a renewed period of trade conflict.
