European Union Puts US Trade Deal on Hold Amid Trump's Greenland Threats

European Union lawmakers have agreed to delay ratification of a key trade agreement with the United States in response to tariff threats issued by US President Donald Trump over Greenland, signalling growing tensions between Washington and its long-standing allies.

The European Parliament had been preparing to vote in the coming weeks on removing tariffs on US industrial goods under the agreement, which was finalised in July after months of negotiations. However, lawmakers have now decided to hold off on the approval process as the 27-member bloc assesses its response to the latest US threats.

While the delay does not derail the agreement, EU lawmakers said the move sends a strong political message to the White House. The deal was reached after a prolonged standoff last year, during which the US imposed 15 per cent tariffs on EU goods before both sides struck a compromise.

“It is an extremely powerful lever — I don’t think companies would agree to give up the European market,” Valerie Hayer, president of the centrist Renew Europe group, told reporters, underscoring concerns that uncertainty over the agreement could unsettle American businesses.

Trump's Threats

Trump has warned of imposing new tariffs on six EU countries, including major economies France and Germany, for refusing to support his demand to assert US control over Greenland, an autonomous territory of Denmark.

In response, EU leaders are set to convene an emergency summit in Brussels on Thursday evening to discuss the escalating dispute. The bloc is considering a range of countermeasures if the US president proceeds with the threatened tariffs, including formally putting last year’s trade agreement on hold and imposing retaliatory duties worth up to Euro 93 billion (USD 108 billion) on US imports.

The retaliatory tariff package was drawn up during the height of the EU-US trade confrontation last year but was suspended until February 6 to avoid a full-scale trade war.

Beyond these measures, French President Emmanuel Macron has called for the possible activation of the EU’s anti-coercion trade instrument, a powerful tool designed to respond to economic pressure, should Washington carry through with its threats.

Also Read: Canada, Greenland Part of New Map Shared by Donald Trump