The European Union is poised to halt the ratification of its trade deal with the United States following Washington’s imposition of a 15% tariff on EU goods.
Bloomberg reported the development on Monday, citing European Parliament sources.
Lawmakers say the suspension is necessary as they seek clarity from the Trump administration on the revised tariff framework.
What they are saying
EU lawmakers are delaying the legislative process to better understand the impact of Washington’s tariffs.
Political groups in the European Parliament, Bloomberg reported, have agreed to halt work on approving the trade deal until further details are provided.
- Zeljana Zovko, the European People’s Party’s lead trade negotiator on the US deal, said: “We have no other option” but to pause approval while seeking clarification.
- The European People’s Party, along with the Socialists & Democrats and the liberal Renew group, support the suspension.
Bernd Lange, chairman of the parliament’s trade committee, has called an emergency meeting to reassess the EU-US accord.
EU ambassadors are scheduled to review the broader trade relationship with the United States.
Lawmakers noted that the latest tariff announcement — first a 10% global levy, later increased to 15% — has created uncertainty and economic turbulence for EU exporters.
Backstory
The EU-US trade deal was initially agreed upon last summer between then-US President Donald Trump and European Commission President Ursula von der Leyen.
- Under the agreement, the US would impose a 15% tariff on most EU exports, while removing tariffs on American industrial goods entering the EU. However, a 50% tariff on European steel and aluminum imports would remain in place.
- EU officials described the arrangement as lopsided but accepted it to avoid a broader trade war and maintain US security support, particularly regarding Ukraine.
- The European Parliament had initially targeted March for ratification.
The deal has faced repeated obstacles, including US threats over Greenland and expanded metals tariffs covering hundreds of products.
Amendments introduced by lawmakers, including a sunset clause, mean that even if ratified, the agreement would require further negotiations before taking full effect. Previous attempts to ratify the deal were also halted amid geopolitical tensions and policy shifts by Washington.
What you should know
The suspension highlights continuing uncertainty in EU-US trade relations under Trump’s administration. EU lawmakers are emphasizing due diligence before committing to the accord.
- The European Parliament’s pause follows the US Supreme Court ruling that struck down Trump’s use of emergency powers to enforce reciprocal tariffs.
- On Friday, Trump had said he would replace the tariffs invalidated by the court with a 10% levy on all goods entering the US.
- Lawmakers want more detailed information on Washington’s revised tariff stance before moving forward.
- The emergency review by the trade committee and EU ambassadors will determine the next steps in the ratification process.
In April, Trump relied on the International Emergency Economic Powers Act to impose tariffs ranging from 10% to 50% on multiple US trading partners.
Under the revised framework, exports from Nigeria to the US would face a 14% tariff, compared to the 27% rate the US government claims it receives from Nigeria.
