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European Parliament Freezes US Trade Agreement Talks

However, opposition within the European Parliament has steadily intensified. Many lawmakers believe the proposed terms favor the United States disproportionately.
January 22, 2026

The European Parliament has put negotiations on a proposed trade agreement with the United States on hold, reflecting rising political tensions between Washington and European capitals.

The move follows strong objections from lawmakers over recent statements and actions by US President Donald Trump, including his push to acquire Greenland and warnings of possible tariffs against European partners that resist the plan.

The suspended talks were focused on a trade package intended to ease long-standing frictions between the two sides of the Atlantic. The agreement, reached in principle during discussions in Turnberry, Scotland, last July, aimed to reduce import duties on a wide range of American goods entering the European market. Supporters of the deal had argued that it would help stabilize transatlantic trade at a time of global economic uncertainty.

However, opposition within the European Parliament has steadily intensified. Many lawmakers believe the proposed terms favor the United States disproportionately. While the European Union would remove most import duties on US products, the United States would continue to apply an average tariff rate of about 15 percent on European exports. Critics say this imbalance runs counter to the principle of fair and reciprocal trade that underpins EU policy.

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The agreement also included provisions to extend zero-duty treatment on specific US seafood products, an arrangement first introduced in 2020. For the deal to take effect, it must receive approval from both the European Parliament and EU member states, giving legislators significant influence over whether negotiations move forward.

Until recently, some lawmakers were prepared to back the deal if additional safeguards were included. These conditions reportedly involved a review mechanism after 18 months and measures to protect European industries from sudden increases in US imports. But the broader political fallout linked to Washington’s position on Greenland and its tariff threats has hardened opposition, leading to the current pause.

The trade committee of the parliament had been scheduled to vote on the proposals in late January, but that session has now been postponed. Parliamentary officials say discussions will remain suspended until there is clearer separation between trade negotiations and geopolitical disputes.

The decision underscores deeper strains in relations between the European Union and the United States. Analysts warn that continued uncertainty could affect businesses on both sides, particularly exporters who rely on stable trade rules and predictable market access. At the same time, European lawmakers argue that trade agreements must be built on mutual trust, not political pressure.

From the US perspective, the deal was intended to address long-standing trade grievances and strengthen economic ties with Europe. Yet many in Brussels insist that any agreement must respect multilateral principles and the rules-based system overseen by bodies such as the World Trade Organization.

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