EU Halts Approval of US Trade Deal Amid Greenland Tensions

Thu Jan 29 2026 18:58:48 GMT+0200 (Eastern European Standard Time)

The European Parliament suspends a significant trade agreement with the US following President Trump's controversial push to acquire Greenland, escalating trade tensions between the two parties.

The European Parliament has officially suspended the approval of a vital trade deal with the United States amid rising tensions triggered by President Trump's proposal to take control of Greenland. This decision, announced in Strasbourg, is a response to Trump's assertive trade policies, which had previously eased after a July agreement at Trump's golf course in Scotland. The suspension signals a potential trade war, and the EU could advance tariffs on American goods unless cooperation resumes.

The European Parliament has suspended the approval of a key US trade deal agreed in July in protest against Donald Trump's demand to take over Greenland.

The suspension was announced in Strasbourg, France, on Wednesday, as the US president addressed the World Economic Forum in Davos.

The move followed renewed trade tensions between the US and Europe sparked by Trump's bid to acquire Greenland, which had rattled financial markets, reviving talk of a trade war and the possibility of retaliation against the US.

Hours later, Trump said on social media he had reached a 'framework' deal on Greenland's future and would not carry out threats to put new tariffs on eight NATO members.

Trade tensions between the US and Europe had eased since the two sides struck a deal at Trump's Turnberry golf course in Scotland in July.

That agreement set US levies on most European goods at 15%, down from the 30% Trump had initially threatened as part of his 'Liberation Day' wave of tariffs in April. In exchange, Europe had agreed to invest in the US and make changes on the continent expected to boost US exports.

However, on Wednesday, shortly after Trump threatened fresh US tariffs over Greenland, Bernd Lange, chair of the European Parliament's International Trade Committee, stated that there was 'no alternative but to suspend work on the two Turnberry legislative proposals'.

He emphasized that work to implement the trade plans would remain on hold until the US chooses to re-engage on a path of cooperation rather than confrontation.

The suspension raises the possibility that the EU may finalize tariffs on €93 billion ($109 billion, £81 billion) worth of American goods that were previously announced last year in response to Trump's earlier tariff announcements.

Initially, those tariffs were put on hold while the trade deal was being negotiated, but they will now be enforced on February 7 unless the EU chooses to extend the pause or approves the new deal.

Lange warned that there would be 'no possibility for compromise' until Trump's threats ceased. He also hinted at the potential activation of the EU's 'anti-coercion instrument' aimed at retaliatory measures, following support from French President Emmanuel Macron.

In a subsequent interview, Lange remarked on the need to evaluate Trump's 'framework deal', suggesting uncertainties remain regarding its implications.

Observing Trump's approach, one EU source responded with a simple eye-roll emoji when asked about Trump's withdrawal from the tariff threats, indicating a prevailing skepticism in Brussels regarding the US President's reliability.

Trump, speaking in Davos, reiterated his interest in acquiring Greenland, insisting he would not employ force in the negotiations while calling for 'immediate discussions' with Denmark.

The situation remains fluid, as financial markets responded positively to Trump's comments, with US shares climbing more than 1% following his announcement.