European Parliament halts US-EU trade deal ratification amid Trump's threats
What's the story
The European Parliament has suspended the ratification of a major trade deal with the United States. The decision comes amid uncertainty following a recent US Supreme Court ruling that struck down most of Trump's tariffs, and subsequent threats by Trump to impose higher tariffs. "Nobody knows what will happen... and it's unclear if there will be additional measures or how the United States will really guarantee" its end of the agreement, Bernd Lange, head of the parliament's trade committee, said.
Market impact
Trump's threats impact global markets
Trump took to social media to threaten "any country that wants to 'play games' with the ridiculous supreme court decision." This has caused a slump in US stock markets. The Dow Jones Industrial Average fell over 650 points, or more than 1.3%. The S&P 500 and Nasdaq Composite indices also witnessed declines of 0.6% and 0.7%, respectively. In Europe, the Stoxx Europe 600 index dipped by 0.2%, with major indexes in Germany, Norway, Switzerland, Belgium, and Sweden also trading lower.
Deal details
Trade deal reached last July
The trade deal, which was reached between Trump and European Commission President Ursula von der Leyen last July, aimed to reduce tariffs on a range of products in a variety of sectors for American exporters. It would have capped most US tariffs on EU imports at 15% and eliminated them for aircraft parts, generic drugs, and semiconductor equipment, among others. The agreement was intended to provide "stability and predictability for citizens and businesses on both sides of the Atlantic."
Skepticism expressed
EU lawmakers demand clarity from US
Despite the trade deal's potential benefits, European lawmakers remain skeptical of Trump's plans. They have called for more clarity from the US on its commitments under the agreement. "The U.S. needs to tell us precisely what is going on," European Union trade spokesman Olof Gill said. European Union trade spokesman Olof Gill said, "The US needs to tell us precisely what is going on," adding that current answers from the Trump administration have not satisfied EU concerns.
Global response
India, China react to trade deal stalemate
Gill said, "There is engagement ongoing with the US, but there is more required." Amid these developments, trade negotiators from India have canceled a planned trip to Washington for talks on a pending trade deal, according to various media reports. China has also sought more information and is reviewing the court's ruling. The country has called on the US to completely eliminate its tariffs.