German Automakers Denounce Parliament’s Mercosur Referral Decision

The European Parliament has officially suspended the US trade deal ratification, directly responding to President Trump’s threat of 10% tariffs unless Europe supports his Greenland acquisition plans. This decision represents the most substantial material pushback Brussels has demonstrated against what several European leaders characterized as blackmail.
Trade committee head Bernd Lange made clear that compromise remains impossible while threats concerning Greenland persist. The suspended agreement had promised American exporters unprecedented access to European markets with zero tariffs on numerous industrial goods.
Despite the trade deal suspension, the EU’s commitment to purchase $750 billion in American energy remains fully operational. Lange confirmed this energy arrangement exists independently from the tariff negotiations, allowing Brussels to preserve energy cooperation while defending political principles.
The deteriorating diplomatic relationship became apparent when Ursula von der Leyen, president of the European Commission, revised her travel schedule following her parliamentary address. She cancelled a Davos visit where Trump was attending, choosing instead to return directly to Brussels for emergency summit preparations.
Adding to Europe’s trade complications, parliament voted by a slim 10-vote margin to refer the Mercosur trade deal with Latin American countries to the European Court of Justice. This decision drew condemnation from Lange, the European Commission, and German Chancellor Friedrich Merz. German car manufacturers also denounced the move, concerned about access to Latin American markets. While the Commission could provisionally implement Mercosur as it did with the Brexit agreement, Lange warned this would trigger “huge institutional conflict.” The Thursday summit will focus primarily on US relations, including €93 billion in potential counter-tariffs and an anti-coercion mechanism.