Trump’s Tariff Threats Stall EU Trade Agreement

The European Parliament has suspended progress on a proposed trade deal with the United States following renewed tariff threats from President Donald Trump and his controversial remarks on Greenland.

According to Reuters, the decision halts legislative proposals that would have removed several EU import duties on American goods, including maintaining zero tariffs on US lobster exports. The deal, first reached in Turnberry, Scotland last July, required approval from both the European Parliament and EU member states.

Lawmakers had been debating the measures as part of efforts to ease transatlantic trade tensions, despite concerns the agreement favored Washington. Under the terms, the EU would cut most import duties on US goods, while the US retained a broad 15% tariff rate.

Although many European lawmakers had signaled conditional support — including an 18‑month sunset clause and safeguards against surges in US imports — Trump’s latest threats have shifted the political mood.

The Parliament’s trade committee, which was set to vote on January 26–27, postponed its decision. Committee chair Bernd Lange said Trump’s comments had undermined the Turnberry agreement, forcing the EU to put the deal on hold indefinitely.

Analysts warn the move could escalate tensions between Brussels and Washington. The Trump administration has already ruled out concessions, such as lowering tariffs on steel or spirits, until the deal is finalized, raising fresh uncertainty over the future of EU–US trade relations.