Europe agrees to suspend trade deal with the United States if Trump insists on Greenland and more tariffs
The opinion celebrates the end of negotiations for the EU-Mercosur trade agreement. Photo: iStock
TL;DR
- EU lawmakers agreed to a trade pact with the US with a clause to suspend it if new tariffs are imposed or territorial integrity is threatened.
- The agreement includes an expiration date of March 2028 and conditions for reducing US tariffs on steel-derived products.
- The deal will be voted on in the European Parliament's Trade committee on February 24 and in the plenary session in March.
- If implemented, US products would enter the EU tariff-free, as would all industrial goods.
- Negotiators warned that EU tariffs would be automatically reinstated if the US does not reduce tariffs on over 400 products within six months.
- The agreement faced delays due to disagreements on safeguards following past threats regarding Denmark and Greenland's sovereignty.