European Parliament Blocks US Trade Deal Amid US Tariff Threats and Greenland Negotiations
The European parliament has formally put its ratification of a landmark US trade deal on hold, citing a dispute over Donald Trump's threats to impose 10% tariffs on EU exports unless the bloc agrees to let him take control of Greenland. The move is seen as a significant escalation in tensions between Brussels and Washington, with EU lawmakers expressing outrage at what they called "blackmail".
According to Bernd Lange, head of the European parliament trade committee, the pause will remain until Trump's threats on Greenland are addressed. This stance has sparked concerns that any compromise on ratifying the US deal is unlikely until the situation in Greenland is resolved.
Despite this, EU leaders have reaffirmed their commitment to the agreement, which promises Americans a new era of 0% tariffs on many industrial exports. The decision also appears to be linked to Trump's ongoing efforts to renegotiate the trade pact, with some lawmakers expressing concerns that the US president is attempting to use Greenland as leverage.
In response to the EU's move, Ursula von der Leyen, European Commission president, has called an emergency summit in Brussels on Thursday to discuss possible options for the bloc. These could include imposing tariffs worth β¬93 billion (Β£81 billion) on US exports or activating a never-before-used anti-coercion instrument aimed at limiting US businesses' access to the EU market.
While some lawmakers have expressed concerns about the potential impact of such measures, EU officials argue that they will need to be considered in order to protect European interests. The move has been widely condemned by car manufacturers and other industry groups, which warn that a trade war with the US would lead to higher costs for consumers.
As tensions between Brussels and Washington continue to rise, it remains to be seen how the situation will unfold in the coming weeks. With just 30 days left before Trump's tariff threats are due to take effect, EU lawmakers are facing an increasingly difficult decision about whether to prioritize diplomatic relations with their US counterparts or stand firm on their principles.
The European parliament has formally put its ratification of a landmark US trade deal on hold, citing a dispute over Donald Trump's threats to impose 10% tariffs on EU exports unless the bloc agrees to let him take control of Greenland. The move is seen as a significant escalation in tensions between Brussels and Washington, with EU lawmakers expressing outrage at what they called "blackmail".
According to Bernd Lange, head of the European parliament trade committee, the pause will remain until Trump's threats on Greenland are addressed. This stance has sparked concerns that any compromise on ratifying the US deal is unlikely until the situation in Greenland is resolved.
Despite this, EU leaders have reaffirmed their commitment to the agreement, which promises Americans a new era of 0% tariffs on many industrial exports. The decision also appears to be linked to Trump's ongoing efforts to renegotiate the trade pact, with some lawmakers expressing concerns that the US president is attempting to use Greenland as leverage.
In response to the EU's move, Ursula von der Leyen, European Commission president, has called an emergency summit in Brussels on Thursday to discuss possible options for the bloc. These could include imposing tariffs worth β¬93 billion (Β£81 billion) on US exports or activating a never-before-used anti-coercion instrument aimed at limiting US businesses' access to the EU market.
While some lawmakers have expressed concerns about the potential impact of such measures, EU officials argue that they will need to be considered in order to protect European interests. The move has been widely condemned by car manufacturers and other industry groups, which warn that a trade war with the US would lead to higher costs for consumers.
As tensions between Brussels and Washington continue to rise, it remains to be seen how the situation will unfold in the coming weeks. With just 30 days left before Trump's tariff threats are due to take effect, EU lawmakers are facing an increasingly difficult decision about whether to prioritize diplomatic relations with their US counterparts or stand firm on their principles.