EU Hits Pause On US Trade Deal After Trump’s Greenland Threats

The European Parliament’s trade committee had been preparing for a vote in the coming weeks to remove several tariffs on US industrial goods as part of the deal reached last July.

The European Parliament has decided to pause work on approving a key EU-US trade agreement after US President Donald Trump threatened new tariffs linked to his demands over Greenland, according to a report. The move, seen as a political warning shot to Washington, comes as the European Union weighs how strongly it should respond if Trump follows through with duties against long-standing US allies. While the delay does not cancel the agreement, lawmakers say it signals that “business as usual” is no longer possible as transatlantic tensions rise, with the deal already criticised in Europe as heavily tilted in America’s favour.

Parliament Hits Pause

The European Parliament’s trade committee had been preparing for a vote in the coming weeks to remove several tariffs on US industrial goods as part of the deal reached last July. However, the approval process has now been frozen, with planned votes postponed. Committee chair Bernd Lange indicated that Trump’s tariff threats have undermined the basis for moving forward, pushing the agreement into an indefinite hold.

The agreement had been negotiated after months of wrangling, during which Washington imposed 15% tariffs on EU goods. Despite that, EU lawmakers were considering proceeding with safeguards, but Trump’s renewed pressure has triggered a rethink.

Greenland Threat Sparks Backlash

The suspension follows escalating disputes over Greenland, as Trump has repeatedly pushed for US control of the territory and warned of tariffs against European countries opposing his demands. Reports said he threatened duties targeting six EU nations, a move that triggered strong political backlash inside Europe and sharpened calls for a firm response.

France has publicly backed the freeze, with Foreign Minister Jean-Noel Barrot condemning the use of customs duties as “blackmail” and saying the EU has powerful tools to respond.

Deal Seen As Unequal

A key reason for resistance is that many EU lawmakers view the trade pact as unbalanced. Under the arrangement, the EU would cut tariffs on multiple US industrial goods, while the US would maintain a 15% tariff on many EU products. Lawmakers argue this creates a mismatch in concessions, increasing political pressure within the Parliament.

The freeze is expected to delay the trade agreement substantially and risks opening a wider EU-US trade confrontation if tariff threats translate into action