The European Union has put work on a major trade deal with the United States on hold indefinitely after President Donald Trump threatened to acquire Greenland and impose up to 35% additional tariffs on countries that oppose his ambitions.
The move came as a key group of European Parliament members blocked a vote to ratify the deal Wednesday.
Bernd Lange, chair of the Parliament’s trade committee, announced on X: “EU-US Deal on ice indefinitely!”
The preliminary agreement, reached in July 2025, set tariffs at 15% on EU goods shipped to the US and included commitments for increased EU purchases of American agricultural and energy products.
Lange accused the US of violating the deal by issuing new tariff threats, adding: “Until the threats are over, there will be no possibility for compromise.”
Trump, speaking at the World Economic Forum in Davos, said he did not intend to use military force to acquire Greenland but repeatedly insisted that Europe effectively hand over the island to the United States.
The threats prompted an emergency meeting of European representatives over the weekend.
French President Emmanuel Macron reportedly asked the EU to activate its anti-coercion mechanism, known as a “trade bazooka,” which could involve suspending US company licenses or taxing US services.
Trade between the US and EU totaled nearly $1 trillion in 2024, making any escalation potentially damaging for both economies. EU leaders are set to meet in Brussels on Thursday to discuss possible retaliation if Trump enacts his tariff threats.
Trump’s ability to implement the tariffs may hinge on a case currently before the US Supreme Court, which is expected to issue a ruling soon.