EU Lawmakers Pause US Trade Deal Vote Fearing New Tariffs After Court Ruling

This decision, made six-three, impacts the EU-US trade deal, as EU lawmakers were scheduled to vote on reducing levies on US exports. The ruling leaves sector-specific levies, such as those on steel and aluminum, in place.

The European Commission is seeking clarity from the US Administration on their next steps. Meanwhile, members of the European Parliament's international trade committee are considering pausing the ratification of the trade deal until the implications of the ruling are fully understood, expressing concerns that the US might attempt to reimpose tariffs through alternative legal means.

The court's judgment stated that IEEPA does not grant the president the power to impose tariffs, a power typically requiring explicit congressional authorization.