Ruling Threatens Trade

Bernd Lange, Chairman of the International Trade Committee of the European Parliament, commented after a meeting of the shadow rapporteurs on the impact of a ruling by the U.S. Supreme Court on trade legislation between the EU and the U.S. The ruling, which was issued on February 20, 2026, concerns the application of the International Emergency Economic Powers Act (IEEPA) and has far-reaching consequences for ongoing trade negotiations.

Lange emphasized that the Supreme Court’s decision has clear and unequivocal implications that cannot be ignored. He pointed out that normal business is not possible in the current situation. A key instrument that was used to negotiate and implement the Turnberry deal is no longer available, making the situation significantly more uncertain. This contradicts the objectives that were to be achieved with the Turnberry deal, namely stability and predictability in trade.

Another point Lange raised is the proposed replacement for the IEEPA, known as Section 122. This new section would indiscriminately apply to all countries exporting to the U.S. and would be applied in addition to the existing Most Favored Nation (MFN) rates. This would mean that imports from the EU into the U.S. would be subject to a tariff application exceeding the threshold of 15%. Lange sees this as a clear deviation from the terms of the Turnberry deal.

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