{"id":58974,"date":"2026-02-23T11:38:25","date_gmt":"2026-02-23T15:38:25","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/eu-us-trade-deal-suspended-as-tariff-turmoil-hits-global-markets-dow-jones-falls-1\/58974\/"},"modified":"2026-02-23T11:38:25","modified_gmt":"2026-02-23T15:38:25","slug":"eu-us-trade-deal-suspended-as-tariff-turmoil-hits-global-markets-dow-jones-falls-1","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/eu-us-trade-deal-suspended-as-tariff-turmoil-hits-global-markets-dow-jones-falls-1\/58974\/","title":{"rendered":"EU-US Trade Deal Suspended as Tariff Turmoil Hits Global Markets; Dow Jones Falls 1%"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>European Parliament suspends the EU-US trade deal<\/strong> ratification following a US Supreme Court ruling on tariffs, injecting fresh uncertainty into transatlantic relations.<\/li>\n<li><strong>German Auto Association (VDA) warns of &quot;serious consequences&quot;<\/strong> for Germany&#39;s export-oriented economy, fearing a total termination of the existing tariff agreement.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/markets\/dowjones\/today.aspx\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (<a href=\"\/stock\/DIA\">DIA<\/a>) dropped 1.00%<\/strong> as investors reacted to the escalating trade friction and mixed US manufacturing data.<\/li>\n<li><strong>US Core Capital Goods orders beat expectations with a 0.8% rise<\/strong>, providing a <a href=\"https:\/\/stockmarketwatch.com\/metal\/silver-price.aspx\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">silver<\/a> lining despite a <strong>1.4% decline in overall durable goods orders<\/strong>.<\/li>\n<li><strong>Fitch Ratings highlights China\u2019s growth imbalances<\/strong>, noting a heavy dependence on fiscal support and net trade as domestic demand remains sluggish.<\/li>\n<\/ul>\n<h2>Transatlantic Trade Crisis<\/h2>\n<p>The <strong>European Parliament<\/strong> officially placed the <strong>EU-US trade deal on hold<\/strong> Monday, a move that has sent shockwaves through global markets. <strong>Bernd Lange<\/strong>, Chairman of the Parliament\u2019s Trade Committee, confirmed that legislative work is suspended until further notice as the bloc seeks clarity on US trade policy. This decision follows a <strong>US Supreme Court ruling<\/strong> that struck down certain reciprocal tariffs, prompting the US administration to reconsider its broader tariff framework.<\/p>\n<p>The <strong>German Association of the Automotive Industry (VDA)<\/strong> issued a stark warning, stating that the suspension could lead to <strong>higher tariffs for European manufacturers<\/strong>. The association emphasized that stability in trade policy is of <strong>paramount importance<\/strong> for companies like Volkswagen (<a href=\"\/stock\/VOW3\">VOW3<\/a>), BMW (<a href=\"\/stock\/BMW\">BMW<\/a>), and Mercedes-Benz (<a href=\"\/stock\/MBG\">MBG<\/a>). The VDA is urging both sides to engage in <strong>swift and constructive talks<\/strong> to prevent a further escalation that could devastate Germany\u2019s export-heavy economy.<\/p>\n<h2>US Markets and Economic Data<\/h2>\n<p>Wall Street reacted poorly to the geopolitical tension, with the <strong>Dow Jones Industrial Average (<a href=\"\/stock\/DIA\">DIA<\/a>) extending its fall to 1.00%<\/strong> during Monday&#39;s session. Investors are weighing the risks of a renewed trade war against a backdrop of mixed economic signals. While <strong>US Factory Orders fell 0.7%<\/strong> in line with expectations, the broader manufacturing sector showed signs of underlying resilience in specific categories.<\/p>\n<p>Fresh data from the <strong>US Census Bureau<\/strong> revealed that <strong>Durable Goods Orders dropped 1.4%<\/strong> in December, primarily driven by a slump in transportation equipment. However, <strong>Non-defense Capital Goods orders excluding aircraft<\/strong>, a key proxy for business investment, <strong>rose 0.8%<\/strong>, outperforming the estimated <strong>0.6%<\/strong>. This suggests that despite the headline decline, <em>American businesses are continuing to invest in equipment and technology<\/em> amidst the volatile trade environment.<\/p>\n<h2>Global Outlook: China and Energy<\/h2>\n<p>In Asia, <strong>Fitch Ratings<\/strong> released a report highlighting that <strong>China&#39;s growth remains heavily dependent on fiscal support and net trade<\/strong>. The agency noted that internal imbalances persist, with weak domestic consumption forcing the government to rely on infrastructure spending and exports to meet growth targets. <em>This reliance makes the Chinese economy particularly vulnerable to the very same global trade shifts<\/em> currently unsettling European and American markets.<\/p>\n<p>On the energy front, Ukraine&#39;s <strong>Naftogaz<\/strong> reached a significant milestone by receiving its <strong>first shipment of US LNG<\/strong> via a terminal in Germany. The delivery, facilitated through a partnership with TotalEnergies (<a href=\"\/stock\/TTE\">TTE<\/a>), marks a critical step in diversifying energy routes for Eastern Europe. Meanwhile, in the Middle East, Prime Minister <strong>Netanyahu<\/strong> reaffirmed that <strong>Israel&#39;s alliance with the US<\/strong> has &quot;never been stronger,&quot; providing a rare note of geopolitical stability in an otherwise turbulent day for international relations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways European Parliament suspends the EU-US trade deal ratification following a US Supreme Court ruling on tariffs, injecting fresh 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