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EU-US trade deal ‘on hold’ after new Trump tariffs – POLITICO

By staffJanuary 17, 20262 Mins Read
EU-US trade deal ‘on hold’ after new Trump tariffs – POLITICO
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“The EPP is in favor of the EU-U.S. trade deal, but given Donald Trump’s threats regarding Greenland, approval is not possible at this stage,” Weber wrote. “The 0 percent tariffs on U.S. products must be put on hold.”

While other members of von der Leyen’s governing coalition — the center-left S&D, centrist Renew and left-wing Greens — had been pushing for a strategic pause on the implementation of the trade deal in recent weeks, her own EPP had remained unconvinced until now.

On Wednesday, lawmakers delayed a decision on whether to freeze ratification amid tensions over Trump’s demand that Denmark hand over Greenland to the U.S., and a vote had been expected on Jan. 26. The deal with Washington “will not be postponed,” EPP lawmaker Željana Zovko said at the time.

Karin Karlsboro — the Swedish MEP who serves as coordinator on trade for Renew — told POLITICO that the deal would not find sufficient support from lawmakers.

“I see no possibility for the European Parliament to give the green light to move forward with the tariff agreement when we take a decision on Wednesday. Instead, the EU must prepare to respond to President Trump’s tariff attacks, including those targeting Sweden,” she said. “We cannot rule out either retaliatory tariffs or the use of the ‘bazooka’ if the pressure and coercion continue.”

The EU’s so-called trade “bazooka,” or Anti-Coercion Instrument, offers a range of punitive measures that can be used against trade rivals that try to threaten the bloc. Among them are restrictions on investments and access to public procurement schemes, as well as limits on intellectual property protections.

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