The European Parliament has suspended its work on the European Union–United States trade deal in protest against U.S. President Donald Trump’s demands to acquire Greenland and his threats to impose tariffs on European allies opposing the plan, a move that follows his hour-long speech at the World Economic Forum in Davos and signals a fresh escalation in transatlantic tensions over trade and territorial claims.
The EU assembly has been debating legislative proposals to remove many EU import duties on U.S. goods, a key part of the agreement struck in Turnberry, Scotland, at the end of July, as well as to continue zero duties for U.S. lobsters, initially agreed with Trump in 2020. The proposals require approval by the parliament and EU governments.
Many lawmakers have complained that the trade deal is lopsided, with the EU required to cut most import duties while the U.S. sticks to a broad rate of 15%. However, they had previously appeared willing to accept it, albeit with conditions, such as an 18-month sunset clause and measures to respond to possible surges of U.S. imports.
The trade committee of the European Parliament was due to set its position in votes on January 26-27. However this has now been postponed.
The chair of the committee Bernd Lange told a news conference on Wednesday that the new tariff threats had broken the Turnberry deal, saying it would now be put on hold until further notice.
However, freezing the deal risks angering Trump, which could lead to higher U.S. tariffs. The Trump administration has also ruled out any concessions, such as cutting tariffs on spirits or steel, until the deal is in place.
(With Reuters Inputs)
Sofia Babu Chacko is a journalist with over five years of experience covering Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes that every voice matters, and journalism has a vital role to play in amplifying those voices. Sofia is committed to creating impact and shedding light on stories that truly matter. Beyond her work in the newsroom, she is also a music enthusiast who enjoys singing.
