Second Postponement of Vote
The European Parliament has decided to postpone for a second time the vote on a trade agreement with the US after President Trump imposed a global import tariff of 15%.
The European Parliament's Trade Committee canceled the vote scheduled for Tuesday. Committee Chairman Bernd Lange stated that the temporary 15% tariff from the US could result in some EU exports facing higher duties, while it remains unclear what will happen after the 150-day period ends. MEPs are expected to reconvene on March 4 to assess whether the US clarifies its stance and reaffirms its commitment to the agreement signed last year.
The Turnberry Agreement and Its Terms
The agreement reached in Turnberry, Scotland last July stipulated a 15% US tariff on most EU goods, with the exception of items subject to separate industry-specific tariffs such as steel; some products like aircraft and parts were subject to 0% tariffs. The EU committed to eliminating many import tariffs on US goods and maintaining 0% tariffs on US lobster under the initial 2020 agreement.
Many MEPs consider the agreement unbalanced, but had previously been willing to accept it with conditions such as an 18-month sunset clause and a mechanism to respond if US goods flooded the market. Last month, the Parliament paused discussions to protest statements from President Trump regarding Greenland.
Risk of Higher Tariffs for EU Goods
It is unclear whether the new 15% tariff will supersede the terms of the agreement. If so, the EU's 0% tariff exemptions could become invalid. Mr. Lange estimates that 7–8% of EU goods risk facing higher tariffs than stipulated in last year's agreement if the situation is not clarified.
