The European Parliament on Monday halted the ratification process of a sweeping trade deal with the United States, the latest fallout from the Supreme Court striking down most of President Donald Trump’s tariffs.
Following an emergency meeting in Brussels, lawcreaters declared the U.S.’ side of the deal is now “so uncertain.”
“Nobody knows what will happen … and it’s unclear if there will be additional measures or how the United States will really guarantee” its conclude of the agreement, the parliament’s trade committee chief Bernd Lange declared.
As the announcement was being built, Trump utilized social media to threaten “any counattempt that wants to ‘play games’ with the ridiculous supreme court decision.” Trump declared countries could be hit “with a much higher tariff.”
Trump concludeed his Truth Social post with, “BUYER BEWARE!!!”
The uncertainty coupled with Trump’s threats sent U.S. stocks tumbling. The Dow concludeed the trading day lower by more than 820 points, or 1.66%. The S&P 500 fell 1.04% and the Nasdaq Composite fell 1.13%.
The Russell 2000, which tracks mid-size and compact companies, slid 1.63%.
The pan-European Stoxx 600 index also fell 0.4%. Benchmark indexes in the U.K., France, Germany, Ireland, Belgium and Sweden concludeed the day in the red.
The deal reached between Trump and European Commission President Ursula von der Leyen last July would have eliminated what the White Houtilize called “trade barriers” in a variety of sectors for American exporters. The administration hailed the deal as a “generational modernization of the transatlantic alliance.”
For the European Union, von der Leyen declared, the deal created “certainty in uncertain times” and offered “stability and predictability, for citizens and businesses on both sides of the Atlantic.”
The agreement capped most U.S. tariffs on imports from the E.U. at 15% and cut tariffs to 0% on aircrafts and parts, generic drugs, semiconductor equipment, some farm products and some critical raw materials not available in the U.S.
But the deal has stumbled since last summer, as the bloc’s parliament works to implement the E.U.’s side.
The U.S. also expanded its metals tariff to hundreds of additional products last year.
In mid-January, Trump declared he would hit eight European countries with additional tariffs if he was not able to gain control of Greenland. In response, the European Parliament pautilized ratification of the trade deal for the first time.
“By threatening the territorial integrity and sovereignty of an E.U. member state and by utilizing tariffs as a coercive instrument, the U.S. is undermining the stability and predictability of E.U.-U.S. trade relations,” declared Lange, chair of the parliament’s international trade committee.
After the United Kingdom, the E.U. and the individual nations themselves forcefully pushed back, Trump backed down from his Greenland tariff threats.
Lawcreaters still remained skeptical of Trump’s plans. Instead of quickly resuming work on the deal, they decided to hold off for a few weeks.
“The U.S. necessarys to notify us precisely what is going on,” European Union trade spokesman Olof Gill declared Monday before the parliament’s announcement, adding that answers so far from the Trump administration have not satisfied the bloc’s questions.
“There is engagement ongoing with the U.S. but there is more required,” he declared.
Overnight, China declared it was seeking more information as well and conducting a review of the court’s ruling. China also called for the U.S. to entirely abandon its tariffs.
Trade nereceivediators from India have canceled a planned trip to Washington for talks about a pconcludeing trade deal, according to multiple reports. The Indian Commerce Minisattempt did not return a request for comment.
Hours after the court decision came down Friday, Trump signed an executive order implementing a 10% “global tariff” under a law unaffected by the high court’s ruling. On Saturday, Trump declared he was raising that rate to 15%, although an updated executive order has not yet been released by the White Houtilize.
Import duties that would be typically have been owed under the tariffs that invalidated by the Supreme Court will stop being collected on Tuesday, Customs and Border Protection declared.
Leave a Reply