Lawmakers in the European Union have agreed to delay ratification of a major trade agreement with the United States, following US President Donald Trump’s threat to impose tariffs on European allies over Greenland.
The move by the European Parliament is widely seen as a political warning shot, as the 27-nation bloc debates how forcefully to respond if Trump carries out his threats against long-standing US partners.
Trade Deal Not Scrapped, But Put on Hold
The parliament had been preparing to vote in the coming weeks on a measure to remove tariffs on US industrial goods, a core component of the trade deal.
However, lawmakers decided to suspend approval for now, signalling displeasure without formally cancelling the agreement.
The deal itself was reached in July, after months of tense negotiations during which Washington imposed 15 percent tariffs on EU goods. While the delay does not derail the agreement, it clearly raises pressure on the White House.
EU Lawmakers Say Delay Hits US Businesses
European lawmakers argue that suspending the deal sends a strong message to American companies, which rely heavily on access to the European market.
“It is an extremely powerful lever — I don’t think companies would agree to give up the European market,” said Valerie Hayer, president of the centrist Renew Europe group.
Trump’s Greenland Tariff Threats Fuel Tensions
Trump has warned he could impose tariffs on six EU countries, including economic heavyweights France and Germany, for refusing to support his demand to gain control over Greenland, Denmark’s autonomous territory.
The remarks have escalated diplomatic tensions across the Atlantic and sparked concerns about a renewed EU-US trade war.
Emergency EU Summit on Greenland Crisis
In response, EU leaders are set to hold an emergency summit in Brussels on Thursday evening to discuss the US threats against Greenland.
The bloc is considering multiple options if Trump does not retreat, including:
- Formally freezing last year’s trade deal
- Imposing €93 billion ($108 billion) in retaliatory tariffs on US goods
This tariff package was approved at the height of last year’s EU-US trade standoff but was temporarily suspended until February 6 in an effort to prevent an all-out trade war.
Macron Pushes for Stronger Trade Weapons
French President Emmanuel Macron is also urging the EU to activate its anti-coercion trade instrument, a powerful mechanism designed to counter economic pressure from foreign governments.
The tool would allow Brussels to respond swiftly if Trump follows through on his tariff threats.