Lawmakers halt work on proposed agreement amid rising tensions over tariffs and Greenland remarks
The European Parliament has suspended work on a proposed trade agreement between the European Union and the United States following renewed tariff threats by US President Donald Trump and his controversial comments regarding Greenland, according to Reuters.
The decision effectively halts legislative proposals aimed at easing trade restrictions between both sides, including plans to remove several EU import duties on US goods. The measures form a core part of a preliminary trade understanding reached in Turnberry, Scotland, at the end of July.
Under the proposed deal, the European Union would eliminate most import duties on US products, while the United States would maintain a broad tariff level of around 15 per cent. The agreement also includes provisions to extend zero import duties on US lobster exports to the EU. However, the proposals require approval from both the European Parliament and EU member states before they can take effect.
Lawmakers had been debating the measures as part of broader efforts to de-escalate transatlantic trade tensions, even as concerns persisted that the deal disproportionately favoured the United States. Despite these reservations, many members of the European Parliament had previously signalled a willingness to back the agreement, subject to strict safeguards.
According to Reuters, those conditions included an 18-month sunset clause and protective mechanisms to address potential surges in US imports that could harm European industries. However, Trump’s latest tariff threats particularly against European allies opposing his position on Greenland have shifted the political climate in Brussels.
As a result, the European Parliament’s trade committee has postponed its planned vote on the agreement, which had been scheduled for 26 and 27 January.
Speaking at a news conference on Wednesday, the committee’s chair, Bernd Lange, said the renewed tariff threats had effectively undermined the Turnberry agreement, adding that work on the deal would be suspended until further notice, Reuters reported.
The move risks further straining relations between Brussels and Washington. According to Reuters, freezing the agreement could prompt a tougher response from the Trump administration, including the possibility of higher US tariffs on European exports.
The US administration has also indicated it will not offer concessions such as cutting tariffs on steel or spirits until the trade agreement is fully concluded, further deepening uncertainty over the future of EU–US trade relations.
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