By Gabriel Ani
STRASBOURG, France — The European Union has indefinitely suspended work on a landmark trade agreement with the United States, responding to a sharp escalation in tensions after President Donald Trump threatened to annex Greenland and impose punitive tariffs on European allies.
The decision was formalized Wednesday when the European Parliament’s trade committee blocked a crucial vote to ratify the deal. Bernd Lange, the committee’s chair, announced the suspension on social media, stating the “EU-US Deal is on ice indefinitely.”
“Until the threats are over, there will be no possibility for compromise,” Lange said. “Our sovereignty and territorial integrity are at stake. Business as usual is impossible.”
The preliminary agreement, reached in July 2025 at Trump’s Turnberry resort in Scotland, was intended to stabilize transatlantic commerce. It established a 15% tariff ceiling on most EU goods shipped to the U.S. while the EU committed to massive purchases of American energy and agricultural products.
However, the fragile truce collapsed this week. Speaking at the World Economic Forum in Davos, Switzerland, Trump insisted that the U.S. should acquire Greenland from Denmark, calling the island essential to American security. While he stated he would not use military force, he coupled his demand with a threat to impose additional tariffs—reportedly up to 35%—on countries that oppose the acquisition.
“We probably won’t get anything unless I decide to use excessive strength and force,” Trump told the Davos audience. “But I won’t do that… All the United States is asking for is a place called Greenland.”
The rhetoric has triggered a fierce reaction in Brussels. French President Emmanuel Macron has led calls for the EU to activate its “Anti-Coercion Instrument,” a never-before-used policy known as the “trade bazooka.” The mechanism would allow the bloc to retaliate by suspending U.S. company licenses, restricting access to public tenders, or taxing American services.
“No amount of intimidation will persuade European nations to change their course on Greenland,” Macron said earlier this week.
With trade between the two powers totaling nearly $1.3 trillion annually, the suspension threatens significant economic fallout. EU leaders are scheduled to meet in Brussels on Thursday to finalize a list of retaliatory measures should the White House move forward with new levies on Feb. 1.
The legality of the proposed U.S. tariffs may ultimately rest with the U.S. Supreme Court, which is currently reviewing the executive branch’s authority to impose trade barriers under national security claims.
