European Parliament pauses US trade deal after U.S. tariff ruling and Trump threats
Feb 23rd 2026
MEPs halted ratification after a Supreme Court decision affecting U.S. tariffs and fresh uncertainty from President Trump, prompting market moves and diplomatic reactions.
- European Parliament suspended ratification after an emergency meeting, saying the U.S. side of the deal is now uncertain.
- Trade committee chair Bernd Lange said it is unclear if the United States will impose additional measures or guarantee the agreement.
- President Trump threatened on social media to hit countries with higher tariffs following the court decision.
- Markets and trade partners reacted: U.S. and European stocks fell, China requested information and urged the U.S. to abandon tariffs, and India canceled planned trade talks.
- The July deal would have capped most U.S. tariffs at 15% and eliminated tariffs on aircraft, generic drugs, semiconductor equipment, select farm products and some critical raw materials.