European Union lifts suspension on US trade deal after Trump’s climb down on Greenland

Following President Donald Trump’s retraction of his threat to grab Greenland, European Union lawmakers announced on Wednesday that they would begin efforts to approve a significant trade agreement with the United States.The Parliament halted the process in January as Trump’s lobbying campaign intensified, but it still needs to approve lifting tariffs on American industrial goods under the agreement.

Before a vote by the entire chamber, he said, the committee might decide whether to implement the agreement at its next meeting on February 24.
After months of intense negotiations during which Washington imposed 15% tariffs on EU imports, the European Union and Trump finally reached an agreement last year.Read Also: MCX Silver prices plunge 10% after global sell-off; Exchange announces additional margin requirement

After Trump threatened to impose tariffs on eight European countries for not complying with his demand about Greenland, EU parliamentarians decided to postpone ratifying the agreement.

After claiming to have reached a “framework” agreement with NATO chief Mark Rutte to guarantee increased American influence, the U.S. leader last month withdrew his plans to seize control of Denmark’s independent Arctic area.

This move comes after the EU signed a mega trade deal with India in January. EU Chief Ursula von der Leyen touted it as the ‘mother of all deals’.

This was followed by another trade deal, with time between India and the United States. In this, Trump brought the effective tariff rate from 50% to 18%, the lowest among emerging market economies.