• Source:JND

After the US Supreme Court invalidated Trump’s emergency tariffs on foreign trade partners, calling them beyond his power, the trade deal between the United States and the European Union has once again plunged into uncertainty. The tariff rates on items exported to America are likely to be redefined as the court’s decision continues to ripple through trade negotiations across the globe.

The Chairman of the European Parliament's trade committee, Bernd Lange, on Sunday said that he would propose the suspension of legislative work on approving the Turnberry Agreement during the emergency meeting on Monday. Lange proposes that the process should be put on halt untill Washington provides a full legal assessment and ‘clear commitments’ on where the trade deal between the US and EU stands.

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"Pure tariff chaos from the U.S. administration. No one can make sense of it anymore — only open questions and growing uncertainty for the EU and other U.S. trading partners," Lange wrote on X. The Green group also have supported his stand.

How Court’s Decision Affected US Trade Deal With EU

The Supreme Court of the United States on Friday invalidated sweeping tariffs imposed by Trump on the country’s business partners, holding that the decision was beyond Trump’s power under the International Emergency Economic Power Act (IEEPA), a 1977 emergency act. The court held in a 6-3 decision.

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Responding to the court’s decision to strike down the Trump tariffs, stating no legal grounds, the US President said he was ‘ashamed of certain members of the court’. There was another way in which Trump responded to the court’s decision; he promptly moved to impose 10 per cent global tariffs using section 122 of the Trade Act, which gives the President the right to impose a maximum of 15 per cent tariffs balance the higher deficit. However President can only impose these tariffs for 150 days at max and will have to get it approved by Congress to extend the timeline. The following morning, Trump raised the rates to 15 per cent, the maximum tariff allowed under Section 122.

What Is US-EU Trade Deal

The European Union and the United States reached a trade negotiation at Trump’s Scottish resort last July. As per the negotiation EU agreed to reduce the tariff rates on a large number of American products, while the US fixed a 15 per cent tariff on most European exports. Those tariffs were largely implemented under IEEPA, which the Supreme Court on Friday invalidated, saying Trump exceeded his legal authority under the act. Now the EU products exported to America face 15 per cent, but on a totally different legal footing, which can remain in place for 150 days maximum unless Congress acts.

The European legislators demanded the suspension of parliamentary work after the legal basis of the trade deal between the US and the EU materially changed overnight. It is the second suspension of parliamentary work on the deal in weeks. The committee had earlier frozen proceedings over Trump's threats to acquire Greenland.


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