EU Delays Vote on US Trade Deal Amidst Tensions Over Trump’s 15% Global Tariff

On Monday, the European Parliament opted once again to delay the vote concerning the trade agreement between the European Union and the United States. This decision follows President Trump’s recent implementation of a sweeping 15% import tariff.

The EU assembly has been considering legislative measures aimed at eliminating various EU import tariffs on American products, a critical element of the agreement reached in Turnberry, Scotland, last July. This includes maintaining zero tariffs on U.S. lobsters, a provision initially established with Trump in 2020. Approval by both the parliament and EU governments is necessary for these proposals to move forward.

The vote, originally scheduled for Tuesday, has been deferred by the parliament’s trade committee. Bernd Lange, who chairs the committee, expressed concerns that the new provisional U.S. tariff might lead to increased duties on certain EU exports, with uncertainty about the outcome once the tariff expires in 150 days.

EU legislators plan to reconvene on March 4 to re-evaluate the situation, hoping that the United States will have clarified its stance and affirmed its dedication to last year’s agreement.

This marks the second postponement by the lawmakers, who previously paused their progress on the deal last month to express disapproval over Trump’s proposal to purchase Greenland.

While many legislators have criticized the agreement as being unbalanced, they seemed prepared to accept it under specific conditions. These include an 18-month sunset clause and provisions to address potential surges in U.S. imports.

The trade deal sets a 15% US tariff rate for most EU goods, apart from those covered by other sectoral tariffs such as on steel, with zero tariffs on some products such as aircraft and spare parts. The EU committed to remove import duties on many US goods.

It is not clear whether Trump’s new 15% tariff supersedes the deal. If it does, the EU’s zero tariff exemptions could disappear.

The new tariffs could also be placed on top of pre-existing ‘most-favored-nation’ US duties, which is not the case under the EU-US deal. So for some cheeses, the new 15% surcharge could bring the overall tariff to about 30%.

Lange said this could mean some 7-8% of EU products facing tariffs above the rates agreed last year.