EU Halts US Trade Deal Ratification Citing Breach; Warns of Potential Retaliation

The European Parliament has officially suspended the ratification process for a trade agreement with the United States, following allegations of a contract breach by Washington. Bernd Lange, chair of the international trade committee, confirmed that the move stems from significant uncertainty and recent U.S. tariff actions. European officials indicated that the bloc is prepared to implement retaliatory measures if trade tensions continue to escalate. This breakdown in negotiations marks a significant shift in transatlantic relations, raising concerns over global trade stability. Market analysts expect increased volatility in currency and equity markets, particularly affecting the EUR/USD pair and major indices like the DAX. The suspension highlights the growing divide between the two major economies regarding trade policy and tariff enforcement.