EU-US Trade Agreement Ratification Delayed Amid Tariff Tensions and Court Ruling
The European Union is set to halt the ratification of its trade agreement with the United States following the imposition of global tariffs by the Trump administration. The Supreme Court of the United States recently ruled that the reciprocal tariffs imposed by Trump last year were unlawful. The trade agreement between the US and the European Commission involved a 15% import rate on most EU exports to the US and the removal of tariffs on American industrial goods entering the EU. However, the agreement is now facing delays due to escalating tensions between the two blocs.
The ratification of the deal, which was scheduled for March after approval by the European Parliament, has been put on hold. This marks the second delay in the process, with the first freeze occurring in late January following threats made by the US President over Greenland. The European Commission stated that the current situation is not conducive to fair and balanced transatlantic trade, as agreed by both sides. The deal, which has already been approved by EU member states through the Council, still requires a vote in the European Parliament.
A meeting is scheduled for later this Monday to review the status of the deal and decide whether the parliamentary vote will proceed as planned. Bernd Lange, a member of the Progressive Alliance of Socialists and Democrats (S&D), emphasized the need for clarity on the new tariffs before further progress can be made on the trade agreement. The European Parliament's major political groups, including the EPP, S&D, and Renew Europe, are in agreement on freezing the ratification process.
The recent court ruling by the Supreme Court of the United States declared the tariffs imposed by Trump last year as unlawful. The ruling, approved by a 6-3 majority, highlighted that the President lacked the authority under the 1979 International Emergency Economic Powers Act (IEEPA) to impose these duties. The IEEPA mechanism, intended for true emergencies, has never been used to justify imposing duties of this nature. The US Constitution grants the power to impose taxes and duties to Congress, not the executive branch.
In conclusion, the European Union's trade agreement with the United States faces delays in ratification due to escalating tensions and the recent court ruling on the unlawfulness of the tariffs imposed by the Trump administration. The European Parliament is set to review the situation and decide on the next steps regarding the approval process for the trade deal.