The European Parliament is planning to suspend approval of the US tariffs deal agreed in July, according to sources close to its international trade committee.
The suspension is set to be announced in Strasbourg, France on Wednesday.
The move would mark another escalation in tensions between the US and Europe, as Donald Trump ratchets up his efforts to acquire Greenland, threatening new tariffs over the issue on the weekend.
Trade tensions between the US and Europe had eased since the two sides struck a deal at Trump's Turnberry golf course in Scotland in July.
That agreement set US levies on European goods at 15%, down from the 30% Trump had initially threatened as part of his "Liberation Day" wave of tariffs in April. In exchange, Europe had agreed to invest in the US and make changes at on the continent expected to boost US exports.
The deal still needs approval from the European Parliament to become official. But on Saturday, within hours of Trump's threat of US tariffs over Greenland, Manfred Weber, an influential German member of European Parliament, said "approval is not possible at this stage".
The EU had put on hold plans to retaliate against the US tariffs with its own package targeting €93bn ($109bn, £81bn) worth of American goods while the two sides finalised the details. But that reprieve ends on 6 February, meaning EU levies will come into force on 7 February unless the bloc moves for an extension or approves the new deal.
Also speaking in Davos, US Treasury Secretary Scott Bessent reiterated his warning to European leaders against retaliation, urging them to "have an open mind".
"I tell everyone, sit back. Take a deep breath. Do not retaliate. The president will be here tomorrow, and he will get his message across," he said.
Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer warned that the US would not let retaliation go without response.
"What I've found is that when countries follow my advice, they tend to do okay. When they don't, crazy things happen," Greer said, in remarks reported by the Agence France-Presse.
The US has previously expressed impatience with European progress toward approval of the deal amid ongoing disagreements over tech and metals tariffs.
Posted by John3262005
2 Comments
Well, it is going to be interesting to see what the President will say about this.
According to another article, it is a delay of the vote on the approval of the tariff deal
Though with the administration and it’s willingness to change its mind on anything “signed or agreed”, don’t know how good that deal is anyway
All i can say to the US neoliberal brothers and sisters:
Just move to Europe at this point, and spread liberalism there while it has fire