U.S. Tariffs Prompt EU Freeze on Turnberry Deal

U.S. tariffs are in legal and policy flux after the Supreme Court on Feb. 21 struck down duties based on the International Emergency Economic Powers Act (IEEPA). The White House then invoked Section 122 of the Trade Act of 1974, prompting the European Parliament on Feb. 23 to suspend ratification of the Turnberry deal, raising trade and refund risks.

Supreme Court Ruling and U.S. Tariff Shift

On Feb. 21, 2026, the Supreme Court invalidated the administration’s tariffs imposed under IEEPA in a 6-3 decision. Chief Justice John Roberts wrote that IEEPA does not grant the president unilateral tariff authority and cited the major-questions doctrine. The ruling voided the broad reciprocal tariffs that took effect in April 2025 and related measures targeting fentanyl trafficking. The court explicitly declined to rule on other statutory tariff authorities.

The White House responded the same day by invoking Section 122 of the Trade Act of 1974, which allows temporary tariffs up to 15% for 150 days without congressional approval. The president signed a proclamation imposing a 10% ad valorem duty effective Feb. 24, 2026, at 12:01 a.m. EST. On Feb. 22, the president announced raising the temporary duty to the statutory maximum of 15% and directed the U.S. Trade Representative to initiate Section 301 investigations on an accelerated schedule. The White House listed exemptions for critical minerals, metals, energy, pharmaceuticals, autos, and aerospace, and said it expects to continue honoring legally binding reciprocal trade commitments.

An independent projection estimates up to $175 billion in potential refunds to importers for the vacated IEEPA duties. Courts and the administration have not established refund procedures or timing.

European Parliament Suspends Turnberry Ratification

On Feb. 23, Bernd Lange, chair of the European Parliament trade committee, announced the suspension of legislative approval for the Turnberry deal, postponing a vote that had been scheduled for Feb. 24. Lange said lawmakers needed legal clarity before proceeding. The European Commission warned it would not accept tariff increases beyond the agreement’s 15% ceiling, stating, "A deal is a deal."

The Turnberry agreement, negotiated in July 2025 and formalized in August 2025, set a 15% import-tax ceiling on most European goods entering the U.S. and eliminated many tariffs on U.S. industrial exports. The pact also included a legally binding EU commitment to purchase $750 billion in U.S. energy. Senior EU officials convened an emergency meeting to reassess the transatlantic accord. The Commission identified €93 billion in suspended retaliatory tariffs that it could reactivate if U.S. actions breach the pact. Officials said they will closely monitor developments to restore stability and predictability.

The combination of the court’s decision, the administration’s shift to a time-limited tariff authority, and the European Parliament’s suspension has placed transatlantic trade policy in a narrow and uncertain window. Legal questions about authority and refunds remain, the White House has signaled contingency planning under other statutes, and the suspension of Turnberry ratification presents a politically charged test for the future of the reciprocal deal.