EU parliament blocks US trade deal after Trump’s tariff threat

The European Parliament has suspended the ratification process of its trade deal with the US in response to President Trump's threat to impose tariffs on EU exports unless the US can take over Greenland. This action is the EU's strongest response to what they view as blackmail. The EU is preparing for a potential trade war, considering countermeasures like tariffs on US exports and restricting US businesses' access to the EU market. Ursula von der Leyen returned to Brussels to prepare for an emergency summit to discuss options. In addition, the EU's efforts to diversify markets faced a setback as the Mercosur trade deal was referred to the European Court of Justice. The EU continues to seek diplomatic solutions to avoid a trade war, with Trump's tariff threats due to be realized on February 2.

The European Parliament voted on Wednesday in Strasbourg to refer the EU's free trade agreement with Mercosur (Argentina, Brazil, Paraguay, and Uruguay) to the Court of Justice of the European Union. The court will determine if the agreement is compatible with EU policy. The deal, signed after 25 years of negotiations, aims to eliminate tariffs on over 90% of bilateral trade, benefiting European exports like cars and South American agricultural products. Supporters argue it's crucial to offset US tariffs and reduce reliance on China, while opponents, including farmer groups, fear increased cheap imports will undercut domestic producers. The EU executive expressed regret over the Parliament's decision.

After 25 years of negotiations, the European Union and the Mercosur bloc (Argentina, Brazil, Paraguay, and Uruguay) signed a major free trade agreement on January 17, 2026, in Asuncion, Paraguay. The agreement aims to lower tariffs and increase trade between the two regions, creating one of the world’s largest free trade areas. EU leaders state the deal signals a commitment to fair trade amidst global tariff concerns and isolationism. The agreement received approval from most EU nations but faces opposition from farmers and environmental groups concerned about increased imports and deforestation. The deal must now be approved by the European Parliament and ratified by the legislatures of the Mercosur member states.

The European Union and the South American trade bloc Mercosur (Argentina, Brazil, Paraguay, and Uruguay) are set to sign a free trade agreement on Saturday, creating one of the world's largest free trade areas. The deal, 25 years in the making, aims to eliminate tariffs on over 90% of bilateral trade between the two blocs, which together account for 30% of global GDP and over 700 million consumers. The agreement will benefit European exports like cars, wine, and cheese, while facilitating South American exports of beef, poultry, sugar, and other agricultural products to Europe. The agreement comes amid rising global protectionism and trade tensions, particularly those initiated by the US. The deal was finalized in Brussels last week despite opposition from European farmers.

On Saturday, January 17, 2026, the European Union and the Mercosur bloc of South American nations signed a landmark free trade agreement in Asuncion, Paraguay. The agreement concludes over a quarter-century of negotiations aimed at strengthening commercial ties between the two regions. Leaders from both the EU and Mercosur countries, including presidents and high-ranking officials, attended the signing ceremony. The deal intends to counter rising protectionism and trade tensions globally. The agreement is expected to boost economic cooperation and trade between the European Union and the South American nations within the Mercosur bloc.

EU ambassadors have provisionally approved a free trade agreement with the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay) after 25 years of negotiations. The agreement, the EU's largest in terms of tariff removal, aims to open new markets and reduce reliance on China for critical minerals. While the European Commission and major member states support the deal, some countries, led by France, oppose it due to concerns about increased cheap food imports undercutting domestic farmers. The approval by ambassadors from at least 15 member states representing 65% of the EU's population paves the way for Commission President Ursula von der Leyen to sign the agreement, potentially next week. The European Parliament must also approve the accord before it takes effect.

French farmers are protesting in Paris against a proposed EU trade deal with the Mercosur countries (Argentina, Brazil, Uruguay, and Paraguay). The farmers, organized by the Coordination Rurale union, blocked roads with tractors near landmarks like the Eiffel Tower to demonstrate their opposition. They fear the deal, which would create a large common market, will lead to unfair competition from cheaper South American agricultural products. EU states are scheduled to vote on the deal, which is supported by countries like Germany and Spain but faces strong opposition from France due to its powerful farming lobby. The French government has stated that the road blockades are illegal, but the farmers continue to protest in front of the parliament.

After 25 years of negotiations, the EU and the Mercosur bloc (Brazil, Argentina, Paraguay, and Uruguay) have reached a free trade agreement. The deal, finalized in Brussels, aims to boost trade and political ties between the two regions. While proponents, including the EU Commission President and Brazil's President, tout the agreement's economic benefits and signal against protectionism, it still requires approval from the European Parliament. The EU anticipates €4 billion in annual savings for its companies. Concerns have been raised by European farmers, who fear being undercut by cheaper imports, leading to protests. The EU Commission claims to have addressed these concerns with safeguards. The agreement also includes commitments to combat climate change and ensure access to raw materials for the green transition.

On December 18, 2025, thousands of farmers protested in Brussels against the proposed EU-Mercosur trade agreement, blocking roads with hundreds of tractors. The demonstrations coincided with an EU summit where leaders were debating the trade deal's future. Farmers fear the agreement will flood Europe with cheaper agricultural products from South America, undercutting their livelihoods due to differing regulations. Protesters hurled objects at police, set off fireworks, and disrupted traffic, while authorities responded with tear gas and water cannon. The farmers' primary concern is that products like beef, sugar, and soybeans from Mercosur countries will be produced with less stringent regulations, giving them an unfair advantage.