The European Union Hits Pause on Its U.S. Trade Deal

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by Jeanna Smialek

February 23, 2026

AI-Generated Deep Dive Summary

The European Union has paused its efforts to implement a trade deal with the United States following a pivotal Supreme Court ruling that invalidated President Trump’s tariffs. European officials are seeking clarity on how U.S. trade policy will proceed after Trump rapidly replaced the struck-down tariffs with new ones, which could have a higher impact on many European products. This development has created uncertainty for transatlantic trade relations. The Supreme Court’s decision effectively overturned Trump’s sweeping tariffs, which he had used to renegotiate trading terms globally, including with the E.U. In response, Trump introduced new tariffs under a different legal authority, stacking additional duties on top of existing ones. For European exporters, this means some products could face significantly higher effective tariff rates than previously agreed in the 15% deal struck last year. European lawmakers, such as German Parliament member Bernd Lange, have expressed concern that the new U.S. tariffs will lead to a "whole range of products" facing much higher rates than under the original agreement. This has prompted the E.U. to delay implementation of the trade deal and even postpone a key vote on it. The pause reflects the E.U.’s desire to better understand how the new tariffs will interact with existing ones, particularly for industries like cheese production, where products like Parmesan and Camembert could face near-doubling tariff rates. The situation highlights the ongoing challenges in U.S.-E.U.

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Originally published on NYT Homepage on 2/23/2026