EU lawmakers again postpone vote on US trade deal after Trump's 15% global tariff

• Trump's new 15% tariff could stack on top of existing 'most-favored-nation' duties, potentially raising tariffs on some cheeses to around 30% and affecting 7-8% of EU products above previously agreed rates
• The original deal set a 15% US tariff on most EU goods with zero tariffs on products like aircraft parts, while the EU committed to removing import duties on many US goods including lobsters
• EU lawmakers had already halted work on the deal last month and many consider it lopsided, though they were willing to accept it with conditions like an 18-month sunset clause

Summary

The European Parliament postponed for a second time its vote on the EU-US trade agreement following President Trump's new 15% global tariff. The vote, originally scheduled for Tuesday, was delayed as lawmakers assess the impact of the blanket tariff on the deal negotiated in Turnberry, Scotland in July 2024.

Key Details:

The proposed agreement includes removing EU import duties on many US goods and maintaining zero tariffs on US lobsters (initially agreed in 2020). Under the original deal, most EU goods face a 15% US tariff, with zero tariffs on specific products like aircraft and spare parts, while the EU committed to eliminating duties on numerous American goods.

Critical Concerns:

Uncertainty surrounds whether Trump's new 15% tariff supersedes the existing agreement. If so, EU zero-tariff exemptions could disappear. The temporary US tariff may increase levies on some EU exports, with no clarity on what happens after the 150-day expiration period.

Trade committee chair Bernd Lange noted the new tariffs could stack onto pre-existing "most-favored-nation" duties—potentially raising tariffs on some cheeses to approximately 30%. Approximately 7-8% of EU products could face tariffs exceeding last year's agreed rates.

Next Steps:

EU lawmakers will reconvene on March 4 to determine if the US has clarified its position and confirmed commitment to the 2024 deal. This marks the second suspension after lawmakers halted work last month over Trump's demands.

Many lawmakers view the deal as lopsided but were willing to accept it with conditions, including an 18-month sunset clause and import surge protections.