EU Suspends US Trade Deal Ratification Over Trump's Greenland Tariff Threat
January 22, 2026
The European Parliament has halted the ratification process of its trade deal with the US. This stoppage comes in protest against President Donald Trump’s threat to impose a 10% tariff on EU exports unless the US can take over Greenland. Bernd Lange, head of the European Parliament’s trade committee, said, "Until the threats [on Greenland] are over there will be no possibility for compromise." The US deal offered zero tariffs on many industrial goods, but this promise is on hold. Lange confirmed the EU’s plan to buy $750 billion in energy from the US continues unaffected, as it is separate from the tariff agreement.
The European Commission president Ursula von der Leyen cut short her plans in Davos and returned to Brussels for an emergency summit on Thursday. The EU is considering tough countermeasures like imposing €93 billion tariffs on US goods and using an anti-coercion tool never before activated. This tool could restrict US companies like Apple and Netflix from the EU market, but it risks angering consumers.
The EU still aims for a diplomatic solution to avoid a trade war. Lange noted, "There are always day-by-day surprises coming from the White House," especially before the threatened tariffs begin on 2 February.
Adding to the EU’s trade challenges, the European Parliament narrowly voted to send the Mercosur deal with Latin American countries to the European Court of Justice. Lange called this decision unfortunate. European Commission and German Chancellor Friedrich Merz also criticized the vote, warning it could cause serious conflict if the Commission tried to implement the deal anyway, as it did with the Brexit trade agreement.
The growing tensions highlight a rocky phase in EU-US relations and threaten major trade agreements.
Read More at Theguardian →
Tags:
Eu
Us trade deal
Donald trump
Greenland
Tariffs
Mercosur
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