European Union Faces Trade Stalemate with United States
The European Union (EU) is preparing to halt the ratification process of the EU-US trade agreement. This decision comes in response to US President Donald Trump's recent threats to impose new tariffs on Greenland.
Manfred Weber, leader of the European People’s Party (EPP), the largest political group in the European Parliament, has stated that progress towards an agreement is not possible under the current conditions.
In a social media post on Saturday, Weber expressed that the EPP supports the EU-US trade agreement in principle. However, he argued that approval is not feasible at this stage due to Trump’s threats concerning Greenland. Weber also proposed that EU commitments to reduce tariffs on US products should be suspended.
Background of the EU-US Trade Agreement
The trade agreement in question was shaped by an understanding reached last summer between European Commission President Ursula von der Leyen and President Trump. While some parts of the agreement have begun to be implemented, it requires approval from the European Parliament to fully enter into force.
It has been noted that if EPP Members of the European Parliament (MEPs) act in conjunction with left-leaning groups, they could secure a sufficient majority to either delay or completely block the agreement.
The agreement stipulated that the US would impose a 15% tariff on most EU-origin products, while the EU would eliminate tariffs on US industrial goods and some agricultural products. President von der Leyen had brokered this agreement to avert a full-scale trade war with the Trump administration.
However, many EU MEPs contended that the agreement was unbalanced and favored the US. These criticisms were intensified after the US extended its 50% tariffs on steel and aluminum, already imposed after the July agreement, to hundreds of additional EU products.
US Criticisms and New Tariff Threats
Last month, US Trade Representative Jamieson Greer criticized the EU for allegedly failing to fulfill some provisions of the agreement, particularly concerning regulations targeting technology companies.
President Trump announced yesterday that a 10 percent additional tariff would be imposed on products imported from European countries supporting Greenland, effective February 1. Trump stated that this rate could be increased to 25 percent "until an agreement is reached for the complete and definitive purchase of Greenland." This announcement was met with strong criticism in European capitals.
European Response to US Actions
President von der Leyen stated that the tariffs would "weaken transatlantic relations and increase the risk of a dangerous downward spiral." French President Emmanuel Macron described Trump’s threats as "unacceptable."
Bernd Lange, chairman of the European Parliament’s Trade Committee, also emphasized that a fundamental condition of any trade agreement is respect for national sovereignty. Following Trump’s statements, Lange indicated that work on implementing a trade agreement with the US should be suspended until the threats cease. He also called on the EU to activate the "anti-coercive instrument" (ACI), which has never been used before, if deemed necessary.