The United States has violated terms of its trade arrangements with the European Union several times, a senior EU lawmaker said in a televised interview, raising the stakes in a cross‑Atlantic relationship that anchors more than a trillion dollars in annual commerce.
Bernd Lange, who chairs the European Parliament’s Committee on International Trade, said in comments aired this week that Washington has fallen short of commitments. He spoke as EU and U.S. officials juggle disputes over steel and aluminum, industrial subsidies, and green technology rules while trying to keep tariffs at bay.
“The U.S. has breached the terms of its trade deal with the European Union ‘several times,’” Lange told CNBC.
High-Stakes Ties Under Strain
Transatlantic trade supports millions of jobs and runs over $1 trillion a year in goods and services. That scale makes even small rifts carry heavy costs for companies on both sides.
Recent years brought a pause to a long tariff fight over aircraft subsidies. The EU and U.S. suspended duties tied to the Airbus-Boeing case and opened talks on broader cooperation. They also eased steel and aluminum tensions through a temporary arrangement that replaced U.S. duties with quotas on EU metal.
But those fixes are not final. Negotiators have struggled to convert interim deals into settled, lasting rules. Any breakdown could revive tariffs or trigger new cases at the World Trade Organization.
Points of Friction
Lange’s warning reflects several active flashpoints that business groups continue to watch closely.
- Steel and aluminum: A temporary deal replaced blanket U.S. tariffs with import quotas from Europe. The pact needs renewal or a permanent fix to avoid new shocks.
- Clean-tech subsidies: The U.S. Inflation Reduction Act offers incentives tied to domestic content. European officials argue some rules disadvantage EU producers, especially in electric vehicles and batteries.
- Critical minerals: Talks on recognizing EU inputs for U.S. tax credits have moved slowly, leaving uncertainty for supply chains.
European manufacturers say policy gaps are steering investment away from the bloc. U.S. officials argue domestic incentives are legal and part of a strategy to speed clean energy adoption and secure supply chains.
Competing Views, Shared Interests
Lange’s public remarks signal growing impatience in Brussels. Lawmakers have pressed the European Commission to use enforcement tools if talks stall. They want clear timelines and measurable outcomes.
In Washington, officials have maintained that the U.S. is engaging in good faith and working to align climate and trade goals with allies. They say negotiations on steel, aluminum, and clean-energy inputs are ongoing and complex.
Industry groups are split. European automakers and battery firms warn of lost market access and investment delays. Some U.S. unions and producers back strict rules, arguing they protect jobs and build domestic capacity.
What “Breaches” Could Mean
Lange did not list specific cases in his comment, but the charge raises legal and political questions. A breach claim can trigger a request for consultations, followed by arbitration or WTO review if talks fail.
Possible outcomes range from a negotiated fix to retaliation. Either path carries costs. Firms may delay investment while rules remain uncertain. Consumers could face higher prices if tariffs return.
Data Points and Recent Moves
Transatlantic commerce has proved resilient, even during past tariff fights. After the aircraft dispute paused, bilateral goods trade continued to grow, helped by pent‑up post‑pandemic demand and strong services flows.
Yet investment decisions in sectors like autos, batteries, and metals hinge on predictable rules. Capital spending cycles run years. Policy ambiguity can shift entire projects to different regions.
What to Watch Next
Talks on a lasting steel and aluminum framework remain critical. A deal that balances climate goals with market access would reduce the risk of new duties. Progress on recognizing EU critical minerals for U.S. tax credits could unlock stalled battery projects.
EU lawmakers will keep pressing for deadlines and enforcement. The European Commission may face pressure to act if it sees no movement. Business groups are likely to lobby for clarity before major investment decisions in 2026 and beyond.
Lange’s warning adds urgency to already tight negotiations. Both sides have strong incentives to settle disputes and provide clear rules. A stable transatlantic trade footing would support jobs, supply chains, and the clean‑energy buildout. If talks falter, the cost will show up quickly in delayed projects and revived tariff threats.
