The new trade agreement being negotiated between the European Union and the United States may be suspended due to uncertainty in Washington. Bernd Lange, a leading trade official in the European Parliament, stated that the ratification process of the agreement could be halted until the “chaos surrounding Trump’s tariffs” is clarified.
Lange stated that the “Turnberry Agreement,” a text developed through negotiations between the EU and the US under Ursula von der Leyen, would not be advanced in the European Parliament until clear and binding legal guarantees regarding US trade policy were provided. This stance came after the US Supreme Court’s decision blocking the emergency tariffs imposed by President Donald Trump.
Following the decision, statements that the Trump administration plans to impose new global tariffs of up to 15% have caused serious concern in Brussels. The EU is worried that the frequently changing and legally questionable US trade policies could render any agreement ineffective.
According to the draft agreement under negotiation, a 15% tariff is foreseen on most EU exports to the US. In return, some facilitations are planned for imports from the US to the EU. However, it is noteworthy that the US is maintaining high tariffs on metal products of European origin, such as steel and aluminum.
European lawmakers warn that the current uncertainty could lead to “customs chaos,” arguing that ratifying the agreement without legal clarity would be risky.
*This is not investment advice.