US Issues Ultimatums to EU on Trade Deal, European Officials Push Back Fiercely
Nine months after a controversial trade agreement was initially struck between Brussels and Washington at the Turnberry golf course, the implementation of the EU-US trade deal remains significantly bogged down in fraught negotiations.
Despite the European Commission’s insistence on Thursday that “progress” had been made in late-night talks with MEPs and member state officials, and that the process was “fully in line with standard legislative practice,” negotiators inside the room were reportedly far apart on key issues, with divisions hardening amidst renewed pressure from US President Donald Trump.
The agreement, reached last summer, aimed to scrap EU tariffs on US industrial goods and limit US tariffs to an all-inclusive 15% on most EU products. However, the path to full implementation has been anything but smooth.
Trump, frustrated by the delays,escalated his threats, initially warning he would charge 25% on European cars and trucks if the EU failed to put the deal into force.
This threat was later softened slightly after a phone call with European Commission President Ursula von der Leyen, during which Trump issued a new deadline of July 4th for the EU to fully implement the deal, or face “much higher tariffs.”
He took to social media, emphasizing that he had been “waiting patiently for the EU to fulfill their side of the historic trade deal we agreed in Turnberry, Scotland,” referring to the agreement to cut EU tariffs to zero.
The latest round of trilogue negotiations on Wednesday night, involving EU Trade Commissioner Maroš Šefčovič, MEPs, and EU national governments, broke down after six hours of intense discussions.
While Šefčovič described a “constructive mood,” the outcome was a deadlock, necessitating a new meeting scheduled for May 19.
The primary sticking point is the fierce resistance from several political groups in the European Parliament, whose members refuse to compromise on critical safeguard mechanisms.
MEPs are demanding a number of protective clauses, should Washington violate the terms of the deal or introduce new tariffs.
Key demands include a suspension clause that would allow the EU to immediately freeze the agreement if Trump threatens the EU’s territorial integrity, referencing his earlier suggestion to annex Greenland.
Another safeguard sought by MEPs is a mechanism to prevent distortion of competition within the EU’s Single Market due to a flood of US imports.
Furthermore, the Parliament’s chief negotiator, German MEP Bernd Lange, proposed a sunset clause, stipulating that tariff relief would automatically expire at the end of March 2028 unless explicitly renewed.
In contrast to the MEPs, the European Commission and most EU member states prefer to stick to the original wording of the deal, which did not include these additional safeguards, and advocate for swift approval and implementation.
However, Trump’s persistent threats, particularly the potential hike from 15% to 25% tariffs, have emboldened critics of the agreement within the Parliament, who believe the US president is likely to backtrack and demand further concessions.
Despite combined pressure from governments, the Commission, industry, and the US, MEPs have pushed back against calls to “rubber stamp” the deal, asserting that Trump’s erratic behavior makes safeguards even more necessary.
An S&D source clarified to Euronews, “We are not here to be bullied. It takes some time, but this is the regular legislative EU process, and we are working constructively.”
Similarly, Greens/EFA MEP Anna Cavazzini stated, “The Parliament is not blocking the agreement, we are working on implementing it.”
Despite the current impasse, Parliament officials expressed confidence to Euronews that the deal could be approved within the next two weeks, with an extraordinary meeting being considered to accelerate the process.
European People’s Party MEP Jörgen Warborn, one of the negotiators, emphasized the importance of clarity for businesses and greater predictability in a turbulent situation. European Commission President Ursula von der Leyen, following her “great” phone call with Trump, also expressed confidence that the pending legislation would be approved before the July deadline.
She reiterated the mutual commitment to implementation, stating, “Good progress is being made towards tariff reduction by early July,” and reminded Trump that the 15% all-inclusive cap in the trade deal prevents the US from unilaterally hiking tariffs beyond that.
Beyond the trade discussions, the two leaders also touched upon the conflict in the Middle East, agreeing on the necessity of preventing Iran from acquiring nuclear weapons, highlighting a point of unity amidst the trade tensions.
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