The European Union has suspended negotiations on a proposed trade deal with the United States following renewed tariff threats by U.S. President Donald Trump, a move that has once again strained transatlantic relations. The decision was taken after Trump’s recent remarks on Greenland and warnings of fresh tariffs against European allies, according to a report by Reuters.
The halt effectively pauses legislative proposals that would have reduced several EU import duties on American goods, a central pillar of the trade agreement reached in Turnberry, Scotland, in late July. The deal also sought to maintain zero import duties on U.S. lobster exports to the EU, but required approval from both the European Parliament and EU member states before taking effect.
European lawmakers had been reviewing the proposals as part of broader efforts to calm trade tensions with Washington, despite concerns that the agreement largely favoured the United States. Under the terms, the EU would cut most tariffs on U.S. imports, while the U.S. would continue to impose an average tariff rate of around 15 per cent on European goods.
While many lawmakers had previously signalled openness to the deal — provided it included safeguards such as an 18-month sunset clause and protections against import surges — Trump’s renewed tariff threats appear to have shifted the political mood. Members of the European Parliament said the latest developments had undermined trust and weakened the foundation of the agreement.
The European Parliament’s trade committee was expected to vote on the deal on 26 and 27 January, but those votes have now been postponed. Committee chair Bernd Lange said the Turnberry agreement had effectively been put on hold until further notice. Analysts warn the freeze could provoke a tougher response from Washington, raising fresh uncertainty over the future of EU–US trade relations.
source: punch