EU Hits Pause Button on US Trade Pact as Trump’s Greenland Gambit Backfires

The European Parliament has taken decisive action by formally halting the ratification of its trade agreement with the United States, responding directly to President Donald Trump’s controversial demand linking tariff threats to Greenland’s sovereignty. This unprecedented move marks the most significant material pushback from Brussels against what European leaders have characterized as economic blackmail.
Bernd Lange, who chairs the European Parliament’s trade committee, made clear that negotiations cannot progress under duress. He stated that compromise remains impossible while threats concerning Greenland persist. The suspended deal had promised American exporters unprecedented access to European markets with zero-percent tariffs on numerous industrial products, representing billions in potential trade value.
Despite the suspension, the EU’s commitment to purchase $750 billion worth of American energy remains intact, as officials clarified this arrangement exists independently from the tariff negotiations. This distinction highlights Brussels’ strategic approach to maintaining energy security while defending political principles.
The deteriorating relationship became visibly apparent when European Commission President Ursula von der Leyen altered her travel plans, returning directly to Brussels rather than meeting Trump in Davos. She immediately convened preparations for an emergency summit scheduled for Thursday evening to evaluate the EU’s response options should Washington proceed with its 10% tariff threat.
Among the countermeasures under consideration are substantial retaliatory tariffs worth €93 billion on American exports and potential activation of an unprecedented anti-coercion instrument. This powerful tool, originally conceived to counter Chinese economic pressure, could restrict US companies’ access to the entire European market, affecting major corporations from technology giants to agricultural exporters.