On 17/1, US President Donald Trump announced a 10% tariff on all goods imported from eight European countries: Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland. These tariffs are set to take effect from 1/2, with the rate increasing to 25% by 1/6.

This move could lead the European Parliament to "freeze" its ratification of the trade agreement with the US. Manfred Weber, Chairman of the European People's Party (EPP), stated that escalating tensions between the US and the EU mean the Parliament will not vote in favor of the agreement.

"The EPP supports the EU - US trade agreement, but with Mr. Trump's threats regarding Greenland, ratification is currently impossible," he said.

European Commission President Ursula von der Leyen sits with US President Donald Trump in Turnberry, Scotland, UK on 27/7/2025. *Photo: Reuters*

Other members of European Commission (EC) President Ursula von der Leyen's ruling coalition, including the S&D and Renew parliamentary groups and the Greens, have advocated for a halt to the agreement's approval in recent weeks.

Karin Karlsbro, a Swedish Member of Parliament and Trade Coordinator for the Renew group, stated that the EU - US agreement would not receive sufficient support. "I see no possibility for the European Parliament to greenlight the continuation of the tariff agreement," she said.

The US - EU trade agreement was signed by President Trump and European Commission (EC) President Ursula von der Leyen in 7/2025. It aimed to end the transatlantic tariff confrontation, with the US applying a 15% tariff on imports from the EU in exchange for the bloc not imposing tariffs on US goods. The European Parliament was scheduled to vote on 26/1 on lifting tariffs on US industrial goods, a crucial pillar of the agreement with Washington.

On 17/1, EC President Ursula von der Leyen and European Council President Antonio Costa issued a joint statement opposing President Trump's threat to impose tariffs on eight European countries. They argued that this would "weaken transatlantic relations and risk a dangerous spiral".

European leaders stated they are discussing with the European Union (EU) and its members to find a suitable solution. Karin Karlsbro said retaliatory tariffs or the use of a trade "bazooka" against the US could not be ruled out.

The "bazooka" refers to the Anti-coercion Instrument, which allows the bloc to apply sanctions against trade partners attempting to threaten the EU. These measures include: restricting investment, access to public procurement programs, and limiting intellectual property rights protection.

"The activation of this instrument needs to be clearly considered because it is designed precisely for economic threat situations like this," Karlsbro stated.

Bernd Lange, Chairman of the European Parliament's Trade Committee, also supported deploying the "bazooka". According to him, if trade policy is used as a tool for political pressure, the EU can retaliate with various measures. "I call on the European Commission to immediately initiate procedures and conduct an investigation," he said.

Phien An (according to Politico)