EU lawmakers stall US trade agreement over tariff dispute

The European Parliament on Monday, February 23, decided for the second time to postpone a vote on the European Union’s trade agreement with the United States, following U.S. President Donald Trump’s decision to impose a new blanket 15% tariff on imports.

Lawmakers had been debating legislative proposals aimed at implementing key elements of the EU-U.S. trade deal struck in Turnberry, Scotland, last July. The proposals include removing many EU import duties on American goods and extending zero tariffs on U.S. lobsters — an arrangement first agreed with Trump in 2020. Both measures require approval from the Parliament and EU member state governments.

Parliament’s trade committee had been scheduled to vote on the proposals on Tuesday, February 24,  but has now delayed the ballot, foreign media reported. Committee chair Bernd Lange said the newly announced temporary U.S. tariff raises uncertainty, warning it could lead to higher levies on some EU exports. He noted that it remains unclear what will happen once the tariff expires in 150 days. EU lawmakers are set to reconvene on March 4 to determine whether Washington has clarified its position and reaffirmed its commitment to last year’s agreement.

This marks the second suspension of parliamentary work on the deal. Last month, lawmakers halted deliberations in protest over Trump’s demands to acquire Greenland.

While many members of Parliament have criticised the agreement as unbalanced, they had signalled a willingness to accept it under certain conditions. These included adding an 18-month sunset clause and introducing safeguards to address potential surges in U.S. imports.

Under the terms of the trade deal, the United States would apply a 15% tariff to most EU goods, excluding products already subject to separate sectoral tariffs, such as steel. Some items — including aircraft and spare parts — would be exempt from tariffs altogether. In return, the EU agreed to eliminate duties on a wide range of U.S. goods.

However, uncertainty surrounds whether Trump’s new 15% blanket tariff overrides the existing agreement. If it does, the EU’s negotiated zero-tariff exemptions could be nullified. Additionally, the new tariffs might be applied on top of pre-existing U.S. “most-favoured-nation” duties — something that would not occur under the agreed deal. In practical terms, this could significantly increase costs: for certain cheeses, for example, the additional 15% surcharge could raise total tariffs to roughly 30%.

Lange warned that as a result, approximately 7–8% of EU exports could face tariff levels exceeding those agreed upon last year.

By Tamilla Hasanova