The European Union has paused approval of a major trade agreement with the United States after President Trump warned foreign governments not to “play games” following the Supreme Court’s decision striking down many of his earlier tariffs.
Bernd Lange, chair of the European Parliament’s international trade committee, announced Monday that the agreement reached in July 2025, known as the Turnberry Deal, has been placed “on hold until further notice.” He said clarity and legal certainty are needed before moving forward.
The pause comes as President Trump signaled that countries attempting to shift their position in response to the Court’s ruling could face steeper trade penalties. In a Truth Social post, he warned that any country seeking to exploit what he called a ridiculous Supreme Court decision would be met with much higher tariffs than previously agreed upon.
The Turnberry Deal would establish a baseline 15 percent tariff on imports from the European Union, with higher rates for steel and aluminum. In exchange, the EU agreed to purchase 750 billion dollars in American energy, invest an additional 600 billion dollars in the United States, and buy U.S. military equipment.
After the Supreme Court ruled that President Trump exceeded his authority under the International Emergency Economic Powers Act, he responded by announcing a new 10 percent global tariff on all imports. He later stated that the rate would be raised to 15 percent once documentation is finalized. The 10 percent tariffs took effect Tuesday morning.
Lange has argued that the new tariffs undermine the terms of the agreement. He said the European Union sought stability and predictability in the deal and wants assurance that no additional tariffs will be introduced in the coming years.
In his dissent from the Supreme Court decision, Justice Brett Kavanaugh warned that the ruling could create uncertainty around trade agreements negotiated under tariffs imposed using IEEPA authority. The decision has already sparked additional legal challenges. On Monday, FedEx filed suit seeking a refund of tariffs it paid under the statute.
The dispute underscores the ongoing tension between the administration’s aggressive trade strategy and legal limits on executive authority, as negotiations with major trading partners hang in the balance.
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