The European Union has halted progress on a major trade agreement with the United States following renewed uncertainty over American tariff policy.
Lawmakers in the European Parliament stopped the ratification process after an emergency meeting in Brussels, citing unclear commitments from the U.S. side. Officials said recent legal and political developments had made the future of the agreement uncertain, raising concerns about reliability and enforcement.
The pause followed a court decision that struck down most tariffs imposed by the U.S. administration. Soon after, Donald Trump warned that countries responding negatively could face higher tariffs, including a proposed 15% global rate. These remarks added to market volatility and renewed trade tensions.
Financial markets reacted sharply. Major U.S. stock indexes declined, while several European markets also ended the day lower. The uncertainty affected investor confidence on both sides of the Atlantic.
The trade deal, reached last year between the U.S. and European Union, aimed to reduce trade barriers and cap most tariffs at 15%. It also proposed eliminating tariffs on certain goods such as aircraft components, medical products, semiconductor equipment and select agricultural items.
European lawmakers said previous tariff threats, including warnings linked to Greenland, had already strained trust. While those threats were later withdrawn, officials remain cautious. Trade representatives stated that further clarification from the U.S. is needed before discussions can resume.
Until then, the agreement remains on hold as global trade partners closely watch the next steps in U.S. tariff policy.
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