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EU Parliament fails to reach deal on US trade pact

EU Parliament fails to reach deal on US trade pact

POLITICO — 2026-02-04

News from Brussels

The European Parliament’s top trade lawmakers on Wednesday failed to reach a common position on the EU-U.S. trade deal, a development that could fuel Washington’s impatience at the EU’s tardiness in keeping its side of a bargain struck last summer.

Although MEPs agreed to unfreeze implementation of the pact, Wednesday’s meeting was unable to clear remaining hurdles regarding the Parliament’s position regarding the removal of tariffs on U.S. industrial goods and lobster. Washington has already reduced tariffs on European cars after Brussels introduced the legislation that MEPs are still arguing over.

We need a strong united Europe in this geopolitical situation. It’s not a question of tactics of political preferences or national reflection — it’s a European question,” said Bernd Lange, chair of the Parliament’s trade committee and lead lawmaker on the file.

We agreed to go on and have the [vote] on 24 February in the committee and probably we will have to vote in the plenary on 11 March ... We have a whole package of really good amendments and this will be finalized next Tuesday,” he told POLITICO. 

With the EU still processing the shock of U.S. President Donald Trump’s threats against the territorial sovereignty of Greenland and the Kingdom of Denmark, the liberal Renew group, the Socialists and Democrats and the Greens are pushing to armor-plate the deal by inserting suspension clauses into enabling legislation in case the U.S. president turns hostile again. 

These would also foresee a reference to the EU’s Anti-Coercion Instrument — its most powerful trade defense tool — something the center-right European People’s Party strongly opposes. 

To move forward we need a ‘Trump-proofed’ agreement. If the U.S. threatens new tariffs, introduces new tariffs, or threatens the EU’s security interests, the agreement will be suspended,” said Renew’s lead negotiator Karin Karlsbro.

The EPP, the largest group in the Parliament, has pushed to sign off on the deal following calls from EU leaders to unfreeze its implementation. 

I am disappointed we didn’t reach a deal today,” said Željana Zovko, the EPP lead lawmaker on the file. 

We strongly support reaching an agreement as swiftly as possible. Any further delay only adds uncertainty for European industry and undermines business confidence,” said Michael Strauss, spokesperson for the right-wing European Conservatives and Reformists (ECR) group. 

Other bugbears include the length of a sunset clause that would limit the application of the proposal to 18 to 36 months, as well as whether the EU should withdraw any tariff concessions until a solution is found between Brussels and Washington on the 50 percent tariff the Trump administration has put on steel derivatives.

The failure to reach an agreement on Wednesday risks further delaying the start of negotiations with EU capitals and the European Commission to turn the text into law. 


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