The European Parliament's trade chief on Sunday urged to suspend approval process of the EU-U.S. trade agreement amid what he described as "tariff chaos" triggered by a U.S. Supreme Court ruling that invalidated the U.S. government's sweeping tariff policy, raising fresh uncertainty over transatlantic trade ties, Reuters reports.
Bernd Lange, chair of the European Parliament (EP)'s Committee on International Trade, said on social media that he will propose to pause ratification of the trade deal between the EU and the United States due to the "chaos" caused by the ruling of the U.S. Supreme Court, which found the U.S. administration's large-scale tariff measures unlawful.
Lange said that clarity and legal certainty are required before any further steps are taken. He will formally propose on Monday that the European Parliament temporarily freeze the approval process of the trade agreement until a proper legal assessment and clear commitments are provided by the U.S. side.
The EU and the United States reached the trade agreement in July last year, under which the United States imposed a 15-percent tariff on EU exports.
On Friday, the U.S. Supreme Court ruled that U.S. President Donald Trump's sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) are illegal.
Hours after the ruling, U.S. President Donald Trump announced a 10-percent global import tariff citing Section 122 of the 1974 Trade Act. On Saturday, Trump raised the rate to 15 percent, the maximum allowed under that provision.
Lange said the court's decision and the U.S. administration's subsequent policy shifts had created "pure tariff chaos," leaving uncertainty over whether the United States would honor the agreement or even would be in a position to do so.
On the same day, the European Commission issued a statement calling on the United States to clarify the implications of the court ruling and outline the measures it intends to take next.
The Commission stressed that EU businesses and exporters must enjoy fair treatment, predictability and legal certainty. Unpredictable use of tariffs, it said, would have disruptive effects, undermine confidence in global markets and add greater uncertainty to international supply chains.
