The European Parliament has suspended the approval of a key US trade deal agreed in July in protest against Donald Trump's demand to take over Greenland.
The suspension was announced in Strasbourg, France, as the US president addressed the World Economic Forum in Davos.
The move followed renewed trade tensions between the US and Europe, sparked by Trump's bid to acquire Greenland, which had rattled financial markets, reviving discussions of a trade war and the potential for retaliation against the US.
Hours later, Trump indicated he had reached a 'framework' deal on Greenland's future and would refrain from imposing new tariffs on eight NATO members.
Trade tensions between the US and Europe had eased following a previous agreement at Trump's Turnberry golf course in Scotland last July. This agreement reduced US levies on most European goods from 30% to 15% in exchange for increased European investment in the US, among other concessions.
However, after Trump's recent threats regarding Greenland, Bernd Lange, chair of the European Parliament's International Trade Committee, stated that the parliament had 'no alternative but to suspend work on the two Turnberry legislative proposals.'
He emphasized that the implementation of the trade plans would remain stalled until the US demonstrated a commitment to cooperation rather than confrontation.
The suspension adds potential complications, as the EU reflexively considers reintroducing tariffs on approximately €93 billion worth of American goods—an action announced the previous year during tensions over Trump's tariffs.
Lange added that there would be 'no possibility for compromise' until Trump's threats were dismissed, and he referenced a strong possibility of using the 'anti-coercion instrument' to impose retaliatory measures.
Trump's statements in Davos reiterated his interest in acquiring Greenland, insisting on peaceful negotiations but also showcasing a firm approach toward a deal.
This sequence of events indicates a fluctuating tension in US-EU relations, as financial markets reacted positively to Trump's speech, despite ongoing uncertainties.
