European Parliament set to suspend US trade deal as transatlantic tensions escalate

Global markets on alert as he decision is expected to be announced today at Strasbourg
European lawmakers are said to be concerned that the current environment undermines the spirit of cooperation required to move forward.
European lawmakers are said to be concerned that the current environment undermines the spirit of cooperation required to move forward.File photo/ ANI
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The European Parliament is planning to suspend its approval of the US–EU trade deal agreed in July, according to sources familiar with the matter, in a move that would mark a fresh escalation in transatlantic tensions.

The decision is expected to be announced on Wednesday in Strasbourg, where the Parliament is holding its plenary session. Sources close to the Parliament’s international trade committee said the suspension reflects growing unease among lawmakers over the broader political climate surrounding the agreement and recent developments in US foreign and trade policy, BBC reported on Wednesday.

The planned move comes amid rising friction between Washington and Brussels, following remarks and actions by US President Donald Trump that have unsettled European leaders. Over the weekend, Trump renewed his push to acquire Greenland, an autonomous territory within the Kingdom of Denmark, and reportedly threatened new trade tariffs if European governments resist the proposal. The comments have drawn sharp reactions across Europe, where the idea of Greenland’s acquisition has been widely rejected.

European lawmakers are said to be concerned that the current environment undermines the spirit of cooperation required to move forward with the trade deal, even though it was provisionally agreed earlier this year. While the suspension would not amount to a formal rejection, it would delay the ratification process and signal political discontent at the highest legislative level of the European Union.

The US–EU trade agreement was intended to ease long-running trade frictions, reduce barriers in key sectors and provide a measure of stability to one of the world’s largest trading relationships. Any delay or suspension risks prolonging uncertainty for businesses on both sides of the Atlantic and could invite retaliatory measures if tensions continue to rise.

Officials familiar with the discussions said the European Parliament’s action is also aimed at asserting its institutional role in trade policy, making clear that geopolitical pressure and tariff threats could have consequences for legislative approval. The European Commission, which negotiated the deal, has not publicly commented on the reported suspension plans.

If confirmed, the move would add a new layer of strain to US–Europe relations at a time when both sides are navigating sensitive issues ranging from trade and security to climate policy. Markets and industry groups are likely to watch closely for further signals on whether the standoff hardens into a broader trade dispute or gives way to renewed diplomatic engagement.

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