EU lawmakers delay vote on US trade agreement due to Trump’s 15% global tariff.

EU Parliament Postpones Trade Deal Vote Again

On Monday, the European Parliament opted to delay its vote on the EU’s trade deal for the second time. This decision comes after President Trump introduced a new blanket import tariff of 15%, which affects various goods from the EU.

Discussions within the EU have centered around proposals to eliminate a number of import duties on American products, a critical element of the agreement reached last July in Turnberry, Scotland. Additionally, the plan aims to maintain the zero tariffs on US lobster that were initially set under Trump’s administration in 2020. For this proposal to move forward, it requires the green light from both Parliament and EU member governments.

In a related context, the trade committee in Congress delayed a scheduled vote that was supposed to occur on Tuesday. Bernd Lange, the Commission President, raised concerns that the new US tariffs could lead to increased levies on certain EU exports, and the future remains uncertain after those tariffs expire in 150 days.

Lawmakers in the EU are slated to reconvene on March 4 to evaluate if the US provides clarity on its position and reaffirms its commitment to last year’s agreement.

This isn’t the first time Congress members have put the deal on hold; they suspended discussions last month in response to Trump’s controversial demand to acquire Greenland.

Many lawmakers have expressed concerns that the current agreement appears biased. Nonetheless, they showed some willingness to accept it, though with caveats like an 18-month sunset clause and extra measures to manage a potential surge in imports from the US.

The trade deal stipulates a 15% tariff on most EU products from the US, with exceptions for items covered by other specific tariffs, such as steel, while ensuring zero tariffs on certain products like aircraft and spare parts. The EU has also committed to eliminating import duties on various US goods.

Whether Trump’s newly imposed 15% tariffs will override existing agreements remains unclear. If they do, it could negate the EU’s zero-tariff advantages.

There’s also the possibility of new tariffs that would stack on top of the existing “most-favored-nation tariff,” which isn’t a factor currently under the EU-US deal. So, for some cheese varieties, this new surcharge could increase the total tariff to nearly 30%.