Business

The European Parliament has chosen to halt its efforts on the European Union's trade agreement with the United States. This decision comes in response to U.S. President Donald Trump's request to purchase Greenland and his threats of tariffs against European nations that do not support his proposal. The EU has been discussing plans to eliminate many import duties on U.S. products, which is a crucial aspect of the agreement made in Turnberry, Scotland, in late July. The discussions also included maintaining zero tariffs on U.S. lobsters, a deal initially made with Trump in 2020. These proposals need to be approved by both the parliament and EU governments. Several lawmakers have expressed concerns that the trade agreement is unfair. They note that while the EU is expected to reduce most import duties, the U.S. maintains a general rate of 15%. Despite earlier indications of willingness to accept the deal, lawmakers had suggested conditions, like an 18-month sunset clause and measures to address potential increases in U.S. imports. The trade committee of the European Parliament was scheduled to vote on its stance on January 26-27, but that has now been postponed. Bernd Lange, the chair of the committee, stated at a news conference on Wednesday that the new tariff threats have disrupted the Turnberry deal, and it will remain on hold until further notice. However, putting the deal on ice may provoke Trump, which could result in higher tariffs from the U.S. The Trump administration has also made it clear that it will not consider any concessions, such as reducing tariffs on spirits or steel, until the agreement is finalized.