EU Freezes US Trade Deal Over Global Tariff Hikes

The European Parliament has frozen the ratification of a trade agreement with the United States after Donald Trump implemented a universal import levy beginning February 24, 2026. The surcharge started at 10% and is intended to rise to 15% over a 150-day window. This action follows a February 20 ruling by the Supreme Court of the United States, which struck down the administration's use of the International Emergency Economic Powers Act to apply tariffs.

EU officials argue the new levies breach the 2025 Turnberry agreement, which established a 15% tariff cap on most European goods in exchange for the EU removing tariffs on U.S. industrial products. Bernd Lange, chair of the European Parliament's trade committee, described the situation as pure tariff chaos, citing previous U.S. breaches involving derivative products and Greenland. The European Commission warned that the tariffs would specifically penalize exports of cheese, agricultural products, plastics, and chemicals.

U.S. Trade Representative Jamieson Greer maintained that the administration intends to stand by bilateral deals, asserting that the president's core trade policy remains unchanged. However, European lawmakers are demanding legal certainty before proceeding with the deal. In response to the uncertainty, French officials have urged the EU to consider using its Anti-Coercion Instrument to restrict U.S. market access. The two parties have until July 24 to reach a resolution before the surcharge window expires.