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But Washington is uncertain that the new trade deal between the European Union and the United States could be suspended due to uncertainty surrounding the negotiated agreement. A senior trade official in the European Parliament, Bernd Lange, said that “the ratification process of this agreement could be stopped until the “chaos surrounding Trump’S tariff” is explained.
In the European Parliament, Lange said that “the text developed through negotiations between the EU and US under Ursula von der Leyen would not be advanced until clear legal guarantees regarding US trade policy were made in a process known as the “Turnberry Agreement” which was agreed upon by both parties. The move comes after the US Supreme Court blocked emergency tariffs imposed by President Donald Trump.
Following that decision, reports suggest that the Trump administration plans to impose new global tariffs of up to 15% have raised serious concerns in Brussels. EU fears that the often changing and legally questionable US trade policies could make any deal unworkable.
negotiated, the draft agreement states that most EU exports to the US would be subjected to a 15% tariff on their 20% of its imports. In return some facilitations are planned for imports from the US to the EU. Nevertheless, it is notable that the US is still maintaining high tariffs on European metal products (including steel and aluminum) of European origin.
The uncertainty, European lawmakers say, could lead to “customs chaos” – saying that it would be dangerous for the agreement to have been signed without legal clarity.
*This is not investment advice.
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