European Union puts U.S. trade deal on hold after Supreme Court ruling

(Pexels)

(The Center Square) – The European Union on Monday halted plans to finalize a trade deal with the U.S. after the U.S. Supreme Court said the bulk of President Donald Trump's tariffs were illegal.

The EU's decision is the most significant fallout yet from the Supreme Court's ruling on Friday. Trump's trade deal with the 27-nation bloc was based on his ability to issue tariffs, a power the Supreme Court curtailed in its decision that Trump did not have the authority to enact tariffs under the 1977 International Emergency Economic Powers Act.

The stalled trade deal adds further confusion for U.S. businesses and consumers after the the high court ruling. Trump initially announced a 10% global tariff on Friday after the Supreme Court decision. He raised that to 15% on Saturday, but questions remain about the limit of Trump's tariff authority under the alternative laws he cited Friday.

"The ruling by the Supreme Court ... is clear and unequivocal. Its implications cannot be ignored, and business as usual is not an option," said Bernd Lange, chair of Parliament's International Trade Committee.

Lange said the so-called Turnberry Deal was no longer in force.

"A key instrument used on the US side to negotiate and implement the Turnberry Deal is no longer available," he said in a statement. "The situation is now more uncertain than ever. This runs counter to the stability and predictability we sought to achieve with the Turnberry Deal."

Lange also said Trump's new global tariffs violated the terms of the agreement.

"This, in itself, constitutes a clear departure from the terms of the Turnberry Deal," he said.

Lange said work on the trade pacts would be put on hold "until clarity, stability and legal certainty in EU–US trade relations are re-established." He said the matter would be re-assessed next week.

Trump warned of even higher tariffs in response.

"Any Country that wants to 'play games' with the ridiculous supreme court decision, especially those that have 'Ripped Off' the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to. BUYER BEWARE!!!," Trump wrote in a social media post.

The U.S. trade deal with the European Union called for 15% tariffs on goods coming to the U.S. The deal almost fell apart last month when Trump said he would impose higher tariffs on some European nations until Denmark agreed to give up its control of Greenland. Trump has said the U.S. must control the arctic nation of 57,000 for national and global security in the face of threats from China and Russia.

The U.S. president also said he doesn't need permission from Congress.

"As President, I do not have to go back to Congress to get approval of Tariffs," Trump said. "It has already been gotten, in many forms, a long time ago! They were also just reaffirmed by the ridiculous and poorly crafted supreme court decision!"

Trump announced over the weekend that he would no longer capitalize the name of the nation's highest cfourt in his posts "based on a complete lack of respect." Trump has repeatedly lashed out at the high court since the ruling. He has publicly praised the three conservative justices who dissented to the majority opinion in the case.

The Supreme Court, divided 6-3, ruled that the International Emergency Economic Powers Act didn't give Trump expansive tariff powers to tax goods entering the country. Justices Clarence Thomas, Brett Kavanaugh and Samuel Alito dissented. The majority ruled that Trump's tariffs violated the major questions doctrine, which holds that Congress must speak clearly when it grants significant powers.

"The Framers gave 'Congress alone' the power to impose tariffs during peacetime," Chief Justice John Roberts wrote for the majority.

Treasury Secretary Scott Bessent said Friday the administration will restructure the sweeping import taxes under other legal authorities.

"This administration will invoke alternative legal authorities to replace the IEEPA tariffs," he said. "We will be leveraging Section 232 and Section 301 tariff authorities that have been validated through thousands of legal challenges."

The EU deal was the biggest deal Trump made after announcing "Liberation Day" tariffs on April 2, 2025. U.S. total goods trade with the European Union were an estimated $975.9 billion in 2024. By comparison, U.S. trade goods with Japan totaled an estimated $227.9 billion in 2024.