EU pauses US trade deal approval following Trump’s Greenland tariff warning
The European Union has suspended work on formally approving a trade deal with the United States, citing escalating threats from President Donald Trump. Bernd Lange, chairman of the European Parliament’s international trade committee, said the decision comes in response to Trump’s recent tariff threats targeting Greenland, Denmark, and their European allies. “Until the U.S. decides to re-engage on a path of cooperation rather than confrontation, no steps will be taken to move the deal forward,” Lange said, emphasizing that the bloc’s sovereignty and territorial integrity are at stake.
The trade agreement, negotiated last July during a meeting between European Commission President Ursula von der Leyen and Trump in Scotland, included a cap on U.S. tariffs for most European imports at 15%, with some goods, such as generic pharmaceuticals, enjoying full tariff removal. In return, the E.U. would lower tariffs on certain American products, benefiting U.S. agricultural and industrial exports. The U.S.-E.U. trade relationship is valued at $1.5 trillion annually. Following Trump’s weekend threat to impose tariffs if the U.S. was not allowed control of Greenland, the E.U. is now considering retaliatory measures, including tariffs totaling nearly $110 billion and the possible deployment of its “Anti-Coercion Instrument,” a powerful tool that could restrict U.S. goods, suspend licenses, and limit market access in Europe. Lange indicated support for activating this mechanism, signaling a sharp escalation in tensions between the two trading partners.
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