"US-EU trade deal suspension: European Parliament halts ratification amid U.S. Supreme Court ruling that invalidates most tariffs imposed by President Trum
European Parliament Suspends Ratification of US Trade Deal Amid Tariff Uncertainty
The ratification process for a comprehensive trade agreement between the European Union (EU) and the United States has been halted following an emergency meeting in Brussels, as a result of the U.S. Supreme Court ruling that invalidated most tariffs imposed by President Donald Trump. The EU's trade committee chief, Bernd Lange, stated that the American side of the deal is now "uncertain," with questions remaining about potential additional measures and the U.S.' commitment to uphold its end of the agreement.
The suspension of the ratification process coincided with threats from President Trump on social media, warning any country considering "playing games" with the Supreme Court decision could face a significantly higher tariff. The Dow Jones Industrial Average subsequently plummeted more than 710 points, or over 1.4%, while the S&P 500 and Nasdaq fell by 1% and 1.3%, respectively. European markets also experienced losses, with the pan-European Stoxx 600 index dipping 0.2%. Benchmark indexes in several EU countries including Germany, Norway, Switzerland, Belgium, and Sweden also traded lower.
The trade deal, which was agreed upon between Trump and European Commission President Ursula von der Leyen last July, aimed to eliminate perceived trade barriers for American exporters across various sectors. The White House touted the agreement as a "generational modernization of the transatlantic alliance," while von der Leyen asserted that it provided "certainty in uncertain times" and offered "stability and predictability, for citizens and businesses on both sides of the Atlantic."
The deal capped most U.S. tariffs on imports from the EU at 15%, but reduced tariffs to 0% on aircrafts and parts, generic drugs, semiconductor equipment, some farm products, and certain raw materials. The agreement's suspension now leaves both parties in a state of uncertainty regarding its future.
Title: EU-US Trade Deal Pauses Amidst Escalating Tensions Over Greenland and Tariffs
Lead: The European Union (EU) has temporarily halted ratification of its proposed trade deal with the United States, following President Donald Trump's threats to impose additional tariffs on eight European countries over Greenland. This development comes as tensions escalate between the two economic blocs, leading to concerns about the stability and predictability of their trade relations.
Detailing the situation, the EU Parliament has expressed concern over Trump's aggressive stance towards a potential territorial dispute with Denmark, who owns Greenland, a member state of the EU. The President had threatened to impose tariffs in mid-January if he failed to gain control of the autonomous Danish territory.
In response, Lange, chair of the parliament's international trade committee, stated that such actions from the U.S. undermine the established principles of EU-US trade relations by threatening territorial integrity and sovereignty, as well as employing tariffs as a coercive instrument.
Following strong pushback from the UK, the EU, and individual nations, Trump subsequently withdrew his Greenland tariff threats. However, skepticism remains among lawmakers towards the President's plans. Instead of resuming work on the trade deal promptly, the EU Parliament has decided to delay further discussions for a few weeks.
The EU trade spokesman, Olof Gill, emphasized the need for clarity from the U.S. administration regarding its intentions before any progress can be made in negotiations. He added that the bloc still awaits satisfactory answers from Washington.
Meanwhile, China has also expressed concern over the issue and is conducting a review of the court's ruling. It has called for the U.S. to abandon its tariffs entirely. Furthermore, trade negotiators from India have canceled a planned trip to Washington for talks about a pending trade deal, according to multiple reports.
In a separate development, Trump signed an executive order on Friday implementing a 10% "global tariff" under a law unaffected by the ongoing trade disputes. The details and implications of this order are yet to be fully understood.
Title: High Court Invalidates Tariffs; Trump Announces Increase to 15% Amidst Pending Executive Order
In a significant development, the U.S. Supreme Court has invalidated certain tariffs. On Saturday, President Donald Trump announced his intention to raise import duties to 15%, although as of yet, an updated executive order has not been released by the White House.
Consequently, Customs and Border Protection declared that duties which would normally be collected under the tariffs in question will cease to be collected starting Tuesday. The decision comes as a result of the high court's ruling, adding another layer to the ongoing trade tensions.
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