FRANKFURT, Germany (AP) — The head of the European Parliament’s trade committee has expressed skepticism regarding certain elements of the EU’s trade deal with the Trump administration.
Committee chairman Bernd Lange articulated his concerns during a recent statement, suggesting that the agreement could undergo amendments throughout the legislative approval process.
“A lot of questions are there, and I guess there will be some amendments,” Lange noted, while emphasizing that both he and several of his colleagues harbor doubts about the agreement.
Despite his reservations, Lange did not explicitly oppose the deal, which was reached on July 27 between European Commission President Ursula von der Leyen and U.S. President Donald Trump. Under the terms of this agreement, the EU will implement a 15% tariff on European goods, while U.S. tariffs on cars and industrial products will be eliminated.
Certain EU goods, including aircraft, cork, and generic pharmaceuticals, are exempt from the 15% tariff.
The trade deal has garnered mixed reactions across Europe, with business associations warning that it imposes significant costs, potentially hindering exports to the United States.
In defense of the agreement, von der Leyen highlighted that it lowers the existing 27.5% tariff on automobiles and strives to provide stability and predictability for businesses engaged in transatlantic trade.
However, Lange challenges this view, asserting, “there is no security or predictability,” pointing to a U.S. decision made just two weeks after the deal was signed.
The U.S. opted to apply a hefty 50% tariff on approximately 400 different goods containing steel, such as pumps and motorcycles, contrasting the initially agreed-upon 15% tariff.
In a bid to bolster the deal’s approval, a top EU trade official urged the committee’s support, emphasizing that the tariff rate remains low enough to facilitate trade and ensure that EU companies maintain access to the U.S. market, thereby averting a more severe trade conflict.
“You need to look at the alternative,” stated Sabine Weyand, the director general for trade at the European Commission.
It’s also important to note that the agreement has only been formalized in a brief joint statement, leaving ample room for continued discussions on key issues.
Meanwhile, the legality of President Trump’s actions is under scrutiny. Questions have arisen regarding whether he overstepped his legal authority by declaring a national emergency under a 1977 law, which allowed him to impose extensive tariffs.
A U.S. appeals court recently upheld a ruling from a lower court, determining that the president lacks the power to levy tariffs of such magnitude without congressional approval or alternative legal channels. Trump announced plans to appeal this decision to the U.S. Supreme Court.
Concerns were further heightened when Trump issued threats of tariffs in response to EU digital regulations, which European officials argued were not included in the original trade agreement.
“Where will it end – we are just getting more and more demands from Trump,” commented deputy Saskia Bricmont, who represents the Greens/European Free Alliance group.
The European Parliament will need to take action to implement the EU’s side of the tariffs deal. While Lange did not specify what amendments might be introduced, he noted that the leader of the center-left Socialists and Democrats group has publicly voiced opposition to the deal.
However, given that this group only holds 136 of the 720 seats in the parliament, it cannot unilaterally obstruct the agreement.
In light of these developments, the European Commission has reaffirmed its commitment to pursue trade collaboration beyond the United States. They are currently in the process of obtaining ratification from member states for free trade deals with Mexico and the Mercosur trading bloc in Latin America.
This Mercosur agreement is anticipated to result in the formation of what EU officials describe as the world’s largest free trade zone, comprising 700 million people and significantly reducing tariffs on EU agricultural exports to Latin America.
Additionally, measures have been proposed to protect politically sensitive EU agricultural products, particularly beef, in an effort to address concerns from EU agricultural sectors in France and Poland.
Under the deal, a limited quota of Mercosur beef—representing approximately 1.5% of the European market—would incur a modest 7.5% tariff, while higher quantities would face prohibitive tariffs, alongside a substantial support package of 6.3 billion euros for farmers to manage potential market disruptions.
image source from:apnews