The European Parliament has suspended work on a proposed trade agreement between the European Union and the United States, escalating tensions with Washington amid fresh political and economic disputes involving US President Donald Trump.
The decision follows strong objections by lawmakers to Trump’s recent demands to acquire Greenland and his threats to impose tariffs on European allies that oppose the move. In response, the EU legislature has halted deliberations on key legislative proposals linked to the trade deal, which was reached in Turnberry, Scotland, at the end of July.
The suspended proposals include plans to remove a wide range of EU import duties on US goods and to extend zero-duty access for US lobster exports—an arrangement first agreed in 2020 during Trump’s earlier term. For the agreement to take effect, it requires approval from both the European Parliament and EU member states.
Concerns over the fairness of the deal have long simmered within the parliament. Several lawmakers have criticised the agreement as unbalanced, arguing that it obliges the EU to cut most of its import duties while the United States maintains a broad tariff rate of 15%. Despite these reservations, many legislators had previously signalled a willingness to proceed, provided safeguards were included. These conditions reportedly involved an 18-month sunset clause and mechanisms to respond to potential surges in US imports.
The European Parliament’s trade committee had been scheduled to vote on its position on January 26 and 27. However, those votes have now been postponed. Speaking at a news conference on Wednesday, committee chair Bernd Lange said Trump’s renewed tariff threats had effectively undermined the Turnberry agreement, adding that the deal would be put on hold until further notice.
The move, however, carries risks for the EU. Suspending the agreement could further strain relations with Washington and potentially trigger higher US tariffs. The Trump administration has already ruled out offering concessions—such as reducing tariffs on European spirits or steel—until the deal is finalised.
With negotiations now frozen, uncertainty looms over the future of EU-US trade relations, as both sides weigh the economic consequences of deepening political disagreements.
Melissa Enoch
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