U.S. has breached trade deal and Europe is ready to retaliate, top trade lawmaker tells CNBC

Core Viewpoint - The U.S. has violated the terms of its trade deal with the European Union, prompting the EU to prepare for potential retaliation if necessary [1][2]. Group 1: Trade Deal Breach - The European Parliament has paused ratification of the U.S.-EU trade deal due to concerns over the U.S. government's commitment to the agreement [4]. - Bernd Lange, chair of the European Parliament's international trade committee, stated that the U.S. has breached the deal multiple times, affecting small and medium-sized enterprises in Europe [7][6]. - The U.S. has implemented a universal 10% tariff on all imports, which President Trump plans to raise to 15%, raising concerns about the stability of the trade deal [3][12]. Group 2: EU's Response and Measures - European officials are seeking clarity from the U.S. regarding the validity of trade deals under the new tariff regime, with some suggesting the use of the Anti-Coercion Instrument (ACI) as a retaliatory measure [9][10]. - The ACI could restrict U.S. suppliers' access to the EU market and impose export and import restrictions, although several European countries are generally opposed to using such measures [11][10]. - Lange emphasized the need for certainty from the U.S. government regarding tariffs over the next three years to maintain the integrity of the trade deal [8][7].