STRASBOURG: The European Union’s legislative body has paused the approval and implementation of a trade deal with the United States. The deal was reached last summer with President Donald Trump.
EU lawmakers cited rising threats against Greenland, Denmark, and other European allies. They said the situation made progress impossible.
Bernd Lange, chair of the European Parliament’s international trade committee, announced the decision on Wednesday. He said the EU had no choice but to suspend work on the agreement.
Lange said the EU will not move forward until the United States returns to cooperation instead of confrontation. He stressed that European sovereignty and territorial integrity are at risk.
He wrote on X that the current climate makes “business as usual impossible.”
The move followed Trump’s announcement last Saturday. He said he would impose tariffs on seven EU countries and the UK. He linked the threat to US demands to control Greenland.
The EU–US trade deal was finalized in July. European Commission President Ursula von der Leyen reached it during a visit to Trump’s Turnberry golf resort in Scotland.
The deal capped US tariffs on most EU imports at 15 percent. It also removed tariffs on some goods, including generic medicines. In return, the EU agreed to lower tariffs on selected US agricultural and industrial products.
The transatlantic trade relationship remains massive. It is worth about $1.5 trillion a year. In 2024, the US imported over $600 billion in EU goods. Europe bought more than $360 billion in US products.
Von der Leyen voiced her frustration at the World Economic Forum in Davos. She said a deal should be honored once it is made.
Trump said in his Davos speech that the US would not use military force to take Greenland. However, he did not withdraw a planned 10 percent tariff starting February 1.
Lange called Trump’s statement on military force a small positive sign. He warned that tariff threats of 10 to 25 percent mark a dangerous shift in relations.
He said no compromise is possible as long as the tariff pressure continues.
Also Read: British Media report alleges secret US military planning related to Greenland
EU leaders will meet on Thursday to coordinate their response. They may approve retaliatory tariffs worth up to $110 billion.
The EU could target US exports such as Boeing aircraft, soybeans, and Kentucky bourbon. Officials are also considering the use of the EU’s Anti-Coercion Instrument. This tool allows broad restrictions on US goods and services in Europe.
