EU blocks US trade deal over Trump's tariff threats
The European Parliament will suspend its approval process for a major trade agreement with the United States following tariff threats issued by Donald Trump in response to European opposition to his Greenland ambitions.
Senior European officials confirmed the suspension would be formally announced on Wednesday in Strasbourg. The deal, signed last July, reduced US tariffs on European goods from 30% to 15% and required reciprocal investment and regulatory changes by the EU. It has yet to be ratified by the European Parliament, News.Az reports, citing foreign media.
The suspension marks a significant setback in transatlantic relations and follows Trump’s announcement on Saturday of new tariffs targeting six EU countries, including Finland, France, Germany and the Netherlands. The measures, framed as retaliation for European resistance to US claims over Greenland, would start at 10% in February and increase to 25% in June.
At the World Economic Forum in Davos, European Commission President Ursula von der Leyen said the suspension was a direct result of Washington’s approach.
“When friends shake hands, it must mean something,” she said, referencing the July deal signed at Trump’s Turnberry resort in Scotland. “If one side changes the terms after the fact, trust is lost.”
The European Parliament's international trade committee, which had been reviewing the technical provisions of the agreement, paused its work after comments by German MEP Manfred Weber that approval was “not possible at this stage.”
French President Emmanuel Macron also condemned the US actions in a speech delivered in Davos. “Europe will not become anyone’s vassal,” he said. “Endless tariffs used as leverage against territorial sovereignty are unacceptable.”
Macron had proposed an emergency G7 meeting in Paris, but US officials confirmed Trump would not attend. No such meeting is currently planned.
EU member states will meet at a special summit on Thursday to discuss their response. Options include imposing retaliatory tariffs or triggering the bloc’s anti-coercion instrument, which allows restrictions on market access for countries deemed to be using economic pressure.
US Treasury Secretary Scott Bessent, speaking in Davos, urged European leaders not to escalate the situation. “Do not retaliate. The president will be here tomorrow. He will get his message across,” he said.
The growing tensions have also drawn criticism for distracting from other international priorities. Finnish Foreign Minister Elina Valtonen and Ukrainian President Volodymyr Zelenskyi said the Greenland dispute risks overshadowing the war in Ukraine.
Zelenskyi cancelled plans to attend the Davos forum following heavy Russian attacks on Ukraine’s energy infrastructure. He said he would only travel to Switzerland if the US agreed to security guarantees for Ukraine.
The original July deal had put on hold an EU tariff package worth €93 billion, but that measure is scheduled to come into force on 7 February unless the agreement is ratified or a new extension is granted.
Similar news
