EU lawmakers delay ratifying a key US trade deal after President Trump’s tariff threats over Greenland, signalling strong discontent.
STRASBOURG: EU lawmakers have agreed to freeze the ratification of a major trade deal with the United States following tariff threats from President Donald Trump over Greenland.
The European Parliament’s main political groups announced the decision on Tuesday, calling it a warning shot as the bloc considers its response.
The parliament was scheduled to vote in the coming weeks on removing tariffs on US industrial goods under the agreement.
A delay does not terminate the deal, which was finalised in July after intense negotiations and preceding US tariffs.
However, suspending approval sends a powerful message of discontent aimed at unnerving American businesses.
“It is an extremely powerful lever — I don’t think companies would agree to give up the European market,” said Valerie Hayer, president of the centrist Renew group.
Trump has threatened tariffs against six EU nations, including France and Germany, for not supporting his stance on Greenland.
EU leaders will convene for an emergency summit in Brussels on Thursday evening to address the US threats concerning Denmark’s autonomous territory.
The bloc is evaluating potential retaliatory measures if Trump does not back down.
These responses include pausing the trade deal and imposing previously agreed retaliatory tariffs worth 93 billion euros.
That tariff package was suspended until February 6 to avert a full-scale trade war last year.
Additionally, French President Emmanuel Macron is advocating for the use of the EU’s anti-coercion trade instrument should Trump act on his threats.
