The European Union is set to likely recommence its legislative process concerning a trade agreement with the United States after President Donald Trump withdrew a threatening tariff that had stalled progress on the deal. Roberta Metsola, President of the European Parliament, indicated on Thursday that the step back from tariff escalation removes an immediate barrier to further internal EU deliberations.
"We are happy to see that the escalation is off the table for now," Metsola stated, adding that this development paves the way for continued discussions surrounding the EU-U.S. trade treaty. These talks had paused amid concerns about potential tariffs prompted by Trump's approach to purchasing Greenland, which had caused unease among EU legislators.
This week, the European Parliament decided to suspend work related to the trade deal due to these emerging tariff threats. The agreement under consideration involves significant removal of many EU import duties on U.S.-origin goods, a core component agreed upon in Turnberry, Scotland at the end of July. Additionally, it aims to sustain the existing zero-duty arrangement for U.S. lobsters, initially established during discussions with Trump in 2020. Approval of these legislative proposals requires endorsement by both the Parliament and individual EU member states' governments.
Despite some support, numerous lawmakers have criticized the deal as unbalanced. The EU appears obliged to reduce the majority of its import duties on U.S. products, whereas the United States maintains a broadly applied rate of 15%. Nonetheless, prior acceptance of the deal was conditional, incorporating elements such as an 18-month sunset clause and safeguards to handle potential surges in U.S. imports.
The European Parliament’s trade committee had originally scheduled votes to finalize its stance on January 26 and 27. Metsola expressed optimism that the resolution of tariff issues would allow these conversations to resume promptly, restoring momentum to the trade deal process.