European Parliament (EP) President Roberta Metsola stated on 22/1 that the body is pleased tensions are no longer escalating. This development allows European countries to resume internal discussions on the US-EU trade agreement, which had been stalled due to tariff threats.

Metsola noted that parliament members are optimistic discussions will soon resume, allowing the ratification process to continue as planned.

US and European Union (EU) flags. Photo: Reuters

A few days prior, the EP had agreed to postpone ratification of the trade agreement reached in 7/2025 with the US. This decision followed US President Donald Trump's threat last weekend to increase import tariffs on eight countries over the Greenland issue. The affected nations included Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland. However, on 21/1, President Trump unexpectedly announced that a framework for a Greenland agreement had been reached, withdrawing his threat.

The European Parliament is currently discussing proposals to remove various import tariffs on US goods, under the agreement reached last year. They must also consider whether to extend the 0% tariff on US lobsters, which was agreed upon with Trump in 2020. This proposal requires ratification by the EP and EU member governments.

The EU has implemented the trade agreement with the US since last summer, even though the agreement has not been formally signed. Some leaders, including German Chancellor Friedrich Merz, support the agreement as it helps avoid escalating import tariffs. However, many European leaders criticized it upon its announcement.

To date, many parliament members still complain the agreement is imbalanced. They point out that the EU must reduce most import tariffs, while the US maintains a general 15% tariff on goods from the bloc. The European Parliament is expected to vote on removing tariffs on US industrial goods – a cornerstone of the agreement with Washington – on 26/1.

Ha Thu (according to Reuters)