NEWSCENTRAL reports that the trade agreement between the European Union and the United States is once again under threat. The European Parliament is considering suspending the deal with the U.S. in response to President Donald Trump’s threats regarding Greenland, a territory controlled by Denmark. This turn of events casts doubt on the future of one of the largest trade agreements between the EU and the U.S., which was expected to lead to significant economic changes, including the removal of certain tariffs and improved trading conditions, such as zero tariffs on American lobsters.
According to analysts at NEWSCENTRAL, the European Parliament’s decision to freeze the agreement could impact not only the economic relations between the EU and the U.S., but also the political landscape of Europe. Protest sentiments in the Parliament, sparked by Trump’s threats, have already delayed the vote on key points of the agreement, including those concerning trade in goods like lobsters.
One of the main points of discussion is the imbalance in the trade deal. The EU is committed to reducing many import tariffs, while the U.S. maintains tariffs at the 15% level. This has caused discontent among European lawmakers and creates long-term economic risks for the EU. Specifically, European fishing companies, which depend on trade with the U.S., could incur losses if the agreement is not implemented.
At the same time, Trump’s threat regarding Greenland has become an important political moment that has attracted the attention of several members of Parliament. They argue that continuing to work on the agreement amid political uncertainty related to U.S. foreign policy could be seen as supporting Trump’s actions, which would damage the EU’s international image.
As Freddy Miller, Senior Analyst at NEWSCENTRAL, noted, “The political pressure from the U.S. and the economic instability caused by Trump’s threats could have significant consequences for EU foreign trade. Such an agreement becomes less attractive in conditions of political uncertainty that affect the economies of both sides.”
For both the EU and the U.S., it is crucial to maintain stable and predictable trading conditions. European businesses, especially in sectors like fishing, face serious economic challenges if the agreement is not ratified. For example, lobsters, which have become a symbol of the trade deal with the U.S., are a key product for European countries. Freezing the deal would negatively impact the industry and could lead to increased tariffs on European goods.
NEWSCENTRAL emphasizes that such a move would have long-term consequences. The impact on the market will be felt both in the EU and the U.S. Increasing tariffs on EU products would likely lead to higher prices for consumers and reduce the competitiveness of goods on the international stage.
If threats from the U.S. continue, the European Parliament will be forced to take more stringent measures. Freezing the agreement may be used as a form of political pressure on Trump to make it clear that such threats are unacceptable in the context of international trade relations. At the same time, freezing the agreement should not be merely a response to political threats. It is important for the EU to continue negotiations with the U.S. based on long-term economic interests. NEWSCENTRAL believes that in the long run, the EU should focus on creating more balanced trade agreements with the U.S. to avoid further economic risks.
We at NEWS CENTRAL recommend that EU policymakers focus on minimizing the consequences of political instability while protecting the region’s economic interests. We expect that in the coming weeks, the European Parliament will make a final decision that will determine the future of trade relations between the EU and the U.S.