Europe to suspend approval of US tariffs deal

What’s Happening

Breaking it down: The move follows renewed tensions between the US and EU, as Donald Trump pushes to acquire Greenland.

Europe to suspend approval of US tariffs deal 6 minutes ago Save Jonathan Josephs , Business reporter and Nick Edser , Business reporter Save Bloomberg via The European Parliament is planning to suspend approval of the US tariffs deal agreed in July, according to sources close to its international trade committee. The suspension is set to be just dropped in Strasbourg, France on Wednesday. (wild, right?)

The move would mark another escalation in tensions between the US and Europe, as Donald Trump ratchets up his efforts to acquire Greenland, threatening new tariffs over the issue on the weekend.

The Details

The stand-off has rattled financial markets, reviving talk of a trade war and the possibility of retaliation against the US for its trade measures. S on both sides of the Atlantic were lower on Tuesday, with European stock markets seeing a second day of losses.

In the US, the Dow Jones was down 1. 3% in midday trading, while the S&P 500 dropped 1.

Why This Matters

On the currency markets, the US dollar also fell sharply. 1731 while the pound rose by 0. Borrowing costs also rippled higher around the world, as the biggest sell-off of long-term government debt in months drove up yields on 30-year bonds in markets including the US, UK and Germany.

International observers are watching how this situation develops.

Key Takeaways

• Trade tensions between the US and Europe had eased since the two sides struck a deal at Trumps Turnberry golf course in Scotland in July.
• In exchange, Europe had agreed to invest in the US and make changes at on the continent expected to boost US exports.
• The deal still needs approval from the European Parliament to become official.

The Bottom Line

In exchange, Europe had agreed to invest in the US and make changes at on the continent expected to boost US exports. The deal still needs approval from the European Parliament to become official.

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