When in February 2026 the U.S. Supreme Court declared Donald Trump’s “reciprocal” tariffs illegal, having been introduced under the International Emergency Economic Powers Act (IEEPA), many in Europe breathed a sigh of relief. The celebration proved premature. Just hours after the court’s decision, Trump announced a new global tariff of 10%, and the following day raised it to 15%, its maximum level. NPR
“Pure tariff chaos from the U.S. administration,” described it the chairman of the European Parliament’s Trade Committee, Bernd Lange. “No one can understand anything anymore. Only open questions remain, along with growing uncertainty for the EU and other U.S. trading partners.” Yahoo Finance
It all began in early 2025, when Trump used the IEEPA to impose massive tariffs against both allies and rivals. The transatlantic agreement was signed in July 2025 by the President of the European Commission, Ursula von der Leyen, and Trump after weeks of pressure and tariff threats from Washington. The deal established a 15% tariff on European exports to the U.S., while in return granting tariff-free access to most U.S. goods entering the EU. NBC News
However, on February 20, 2026, the Supreme Court ruled unequivocally that the IEEPA does not authorize the president to impose tariffs, as the power to levy taxes is “very clearly a branch of the taxing power” reserved to Congress under Article I of the Constitution. Fortune
Trump responded by announcing that “other alternatives will be used to replace those the court incorrectly rejected,” and within hours issued a presidential proclamation imposing a global 10% tariff under Section 122 of the Trade Act of 1974 — which allows tariffs of up to 15% for a maximum period of 150 days. The following day he raised the rate to the legal maximum. CNBC
The EU-U.S. agreement established a 15% ceiling on tariffs for most European goods. Since the new 15% tariff is applied on top of existing duties, it would exceed that agreed ceiling — which, according to Bernd Lange, “constitutes a clear violation of the terms of the Turnberry Agreement.” CNBC
Some products such as butter, plastics, textiles, and chemicals would become subject to tariffs above the 15% threshold, according to the European Commission’s internal assessment. SCOTUSblog
European Union leaders expressed alarm at the new tariffs, arguing that the U.S. was further escalating tensions in global trade. CNBC
The European Commission, which manages trade policy for the bloc’s 27 member states, issued a firm statement: “The current situation is not conducive to achieving transatlantic trade and investment that are ‘fair, balanced, and mutually beneficial,’ as both parties agreed in the EU-U.S. Joint Declaration of August 2025. A deal is a deal. As the United States’ largest trading partner, the EU expects the U.S. to honor its commitments.” Supreme Court of the United States
The European Parliament halted the ratification process for the trade agreement with the United States. Following an emergency meeting in Brussels, lawmakers said that the U.S. side of the agreement is now “highly uncertain.” “Nobody knows what will happen… and it is unclear whether there will be additional measures or how the United States will ensure compliance with its side of the agreement,” said Bernd Lange. Yahoo Finance
Members of the European Parliament froze the approval process for the second time in a short period — the first time was when Trump threatened tariffs against European allies that opposed his campaign to annex Greenland. SCOTUSblog
Lange pointed out that Section 122, invoked by Trump as the new legal basis, “applies indiscriminately to all countries exporting to the United States and is imposed on top of the Most Favored Nation (MFN) rate. As a result, EU imports into the United States would be subject to an applied rate exceeding the 15% threshold, which in itself constitutes a clear departure from the terms of the Turnberry Agreement.” Supreme Court of the United States
Trump, in a series of social media posts, warned that he could also impose licensing fees on trading partners, while uncertainty about his next tariff moves shook the global economy and sent stock markets tumbling. Council on Foreign Relations According to the president’s exact words, any country that tried to “play games” with the Supreme Court’s decision would be hit with “much higher” tariffs.
German Chancellor Friedrich Merz told reporters that Europe would enter negotiations with “a very clear European position,” and delegated to the European Commission in Brussels the task of articulating the bloc’s response. ECB President Christine Lagarde, for her part, warned that growing uncertainty could damage trade relations between both sides of the Atlantic. Yahoo Finance
China announced that it was seeking more information and conducting a review of the court ruling, while also calling on the United States to abandon its tariffs entirely. India’s trade negotiators canceled a planned trip to Washington for talks on a pending trade agreement. Yahoo Finance
The net result is that U.S. protectionism will continue, and may become even more chaotic, unpredictable, and disruptive than before, according to analyst Bruce Stokes of the German Marshall Fund. Bloomberg
Section 122 tariffs can only remain in place for 150 days, after which they would require Congressional approval. The duration places the administration in the difficult position of deciding on new tariffs just before the midterm elections. NPR
The key lesson from 2025–2026 for Europe is that trade agreements with the Trump administration do not guarantee stability. Brussels’ response is taking shape on several fronts: diplomatic pressure, legal challenges, and the freezing of ratifications. As economist Mark Zandi summarized: “The United States is moving away from the world, and the rest of the world is now moving away from the United States.” CNBC
Sources: NBC News · Euronews · NBC News (EU deal) · TIME · PBS NewsHour · CNBC · PIIE · Chatham House · CFR · SCOTUSblog · PwC Ireland
