EU Suspends US Trade Deal Approval Amid Tariff Uncertainty

Legislative Processes Halted Due to Uncertainty The main political groups in the European Parliament have announced the suspension of legislative work regarding the ratification of a bilateral trade agreement with the United States.
The decision remains in effect until the details of President Donald Trump’s new tariff program are clarified.
This move, which took effect as of Monday, is seen as a critical development that increases the risk of policy uncertainty in global markets.
Asymmetric Terms and Security Balance The agreement reached last summer between Donald Trump and European Commission President Ursula von der Leyen contained challenging terms for the EU.
The deal proposed a 15 percent tariff on most EU exports, while allowing U.S.
industrial goods to enter the union duty-free.
Brussels had initially accepted these asymmetric conditions to avoid a potential trade war and to maintain U.S.
security support regarding Ukraine.
Supreme Court Ruling Creates Legal Impasse A recent U.S.
Supreme Court decision has pushed the process into a legal deadlock by striking down the "emergency powers act" that Trump utilized to impose tariffs.
Following the court's ruling, Trump’s announcement that he would raise global tariffs first to 10 percent and then to 15 percent raised serious concerns among European decision-makers.
Bernd Lange, Chairman of the European Parliament's Trade Committee, called for an emergency meeting to evaluate the situation.
Zeljana Zovko, the chief negotiator for the EPP, the largest political bloc, stated that there was no choice but to postpone the process until the situation becomes clear.
Investors have begun pricing in a higher "risk premium" for U.S.
assets, while concerns over trade wars continue to sustain demand for gold as a safe haven.