EU postpones vote on US trade deal amid tariff turmoil as Trump warns of harsher measures

The decision comes after a major ruling by the US Supreme Court on tariff measures, adding fresh uncertainty to transatlantic trade ties.

• EU Parliament postpones vote on US trade deal after court ruling
• US Supreme Court ruling complicates transatlantic trade relations
• Markets react as Wall Street futures slip and dollar weakens

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The European Parliament has put off a scheduled vote on moving forward with ratifying a trade agreement with the United States, according to two sources cited by Reuters.

The decision comes after a major ruling by the US Supreme Court on tariff measures, adding fresh uncertainty to transatlantic trade ties.

The Parliament’s trade committee had been expected to take up the matter on Tuesday, but the process has now been paused. This marks the second time EU lawmakers have held back on advancing the agreement, reflecting unease over shifting US trade policies.

At the center of the tension is a recent US Supreme Court judgment, delivered in a 6-3 decision, which found that Trump had acted unlawfully in invoking a longstanding emergency powers law to justify sweeping “reciprocal” tariffs.

The administration had relied on the International Emergency Economic Powers Act (IEEPA) to impose duties ranging between 10 percent and 50 percent on multiple trading partners.

Following the ruling, Trump replaced earlier tariff structures with a flat 10 percent levy on imports, which was later increased to 15 percent.

Despite the legal setback, Trump strongly criticised the court’s decision. In a post on Truth Social, he said, “The court has also approved all other Tariffs, of which there are many, and they can all be used in a much more powerful and obnoxious way, with legal certainty, than the Tariffs as initially used.”

He described the judgment as “ridiculous, dumb, and very internationally divisive,” and warned that alternative mechanisms could be used against foreign nations.

Trump added that he could deploy licences “to do absolutely ‘terrible’ things to foreign countries, especially those countries that have been RIPPING US OFF for many decades”.

Questioning the court’s reasoning further, he said, “But incomprehensibly, according to the ruling, can’t charge them a License fee -- BUT ALL LICENSES CHARGE FEES, why can’t the United States do so?”

The EU-US trade deal itself, negotiated in Turnberry, Scotland at the end of July, includes proposals such as eliminating a range of tariffs on American products, including zero-duty access for US lobsters. However, the agreement still requires approval from both the European Parliament and EU member states.

Markets reacted nervously to the uncertainty. Wall Street futures slipped, and the dollar weakened on Monday as investors assessed the implications of the court ruling and the US administration’s next steps on trade policy.