Topline
The European Union will stop working to legally implement the U.S. trade deal touted by President Donald Trump in response to threats to the bloc’s “territorial integrity,” the chairman of the European Parliament’s Committee on International Trade said on Wednesday, days after Trump threatened retaliatory tariffs on some European nations if they did not negotiate over ownership of Greenland.
A member of the European Parliament said the agreement was paused over concerns about “sovereignty and territorial integrity.”
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Key Facts
Bernd Lange, an EU Parliament member from Germany and chair of the body’s Committee on International Trade, confirmed the pause in a post on X, noting “our sovereignty and territorial integrity are at stake” and insisting “business as usual [is] impossible.”
In a statement, Lange said work would not continue on the deal until the U.S. decides to “re-engage on a path of cooperation rather than confrontation.”
Trump threatened eight countries with steep tariffs for opposing his bid to obtain Greenland, including the six members of the EU: Denmark, Sweden, France, Germany, the Netherlands and Finland, as well as non-EU members Norway and the U.K.
The nations would face a 10% tariff on “any and all goods sent to the United States of America” beginning on Feb. 1, Trump threatened, which could increase to 25% by June.
Key Background
The EU previously negotiated lower U.S. tariff rates in a landmark deal, which also saw the bloc lower its own tariffs on some American goods. European Commission President Ursula von der Leyen approved the deal at Trump’s golf club in Scotland last July. The EU secured a 15% tariff on most of its goods as well as “zero for zero tariffs” on strategic goods like aircraft components and semiconductor equipment. EU lawmakers began discussing pausing the deal shortly after Trump’s tariff threats over Greenland, Bloomberg reported. Speaking at Davos on Tuesday, von der Leyen called the new tariffs a “mistake,” noting “the European Union and the United States have agreed to a trade deal last July. And in politics, as in business—a deal is a deal. When friends shake hands, it must mean something.” Von der Leyen addressed the European Parliament on Wednesday, stating the bloc was at a “crossroads” and insisting “we are fully prepared to act, if necessary, with unity, urgency and determination.”
Tangent
The pause came as Trump spoke at the World Economic Forum in Davos, Switzerland. Trump dedicated a significant amount of his speech to his thoughts on Europe and ambitions to acquire Greenland, which he described as a “a piece of ice, cold and poorly located, that can play a vital role in world peace and world protection.” Trump again called for “immediate negotiations” for the self-governing territory owned by Denmark, which Danish and Greenlandic officials refused to entertain after meeting with U.S. officials last week. He bemoaned the U.S. for returning Greenland to Danish control after the U.S. protected it during World War II, but also implied that he would not try to reacquire the territory through a military occupation. “I don’t have to use force,” Trump said. “I don’t want to use force. I won’t use force.”
Further Reading
Source: https://www.forbes.com/sites/zacharyfolk/2026/01/21/europe-halts-us-trade-deal-over-trumps-greenland-threats/
