(Bloomberg) — European Union lawmakers are poised to halt approval of the EU’s trade deal with the US over President Donald Trump’s vow to impose tariffs on countries that supported Greenland in the face of American threats.
Manfred Weber, president of the European People’s Party, the largest political group in the European Parliament, said on Saturday that agreement with the US is no longer possible.
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“The EPP is in favor of the EU-US trade deal, but given Donald Trump’s threats regarding Greenland, approval is not possible at this stage,” Weber posted on social media. He added that the EU agreement to lower tariffs on “US products must be put on hold.”
The EU-US trade agreement, which European Commission President Ursula von der Leyen struck with Trump last summer, has already been partially implemented but still needs a nod from parliament. If EPP lawmakers join left-leaning political groups, it’s likely they’ll have enough votes to delay or block approval.
Photographer: Andrew Harnik/Getty Images
The trade agreement set a 15% US tariff for most EU goods in exchange for a pledge by the EU to eliminate duties on US industrial goods and some agricultural products. Von der Leyen, who oversees trade negotiations for the EU, made the deal in the hopes of avoiding a full-blown trade war with Trump.
A vocal faction of EU lawmakers have long railed against the agreement, arguing it was too lopsided in favor of the US. That anger has deepened as the US expanded a 50% tariff on steel and aluminum to hundreds of additional EU products after the July accord.
US Trade Representative Jamieson Greer criticized the EU last month for not following through on aspects of the agreement, particularly in regards to the bloc’s regulation of tech companies.
Trump on Saturday announced a 10% tariff as of Feb. 1 on goods from European countries that have rallied to support Greenland in the face of US threats to seize the semi-autonomous Danish territory. He said the levies would increase to 25% unless and until “a Deal is reached for the Complete and Total purchase of Greenland.”
The announcement drew a quick rebuke from European leaders, who are working out the next steps. Von der Leyen said in a statement that “tariffs would undermine transatlantic relations and risk a dangerous downward spiral” while French President Emmanuel Macron dismissed Trump’s threats as “unacceptable.”