EU Suspends U.S. Trade Deal Over Greenland Tariff Dispute

• Trump proposed tariffs of 10% to 25% on European nations while calling for 'ownership and control' of Greenland at the World Economic Forum in Davos
• EU INTA chair Bernd Lange accused Trump of 'using tariffs as an instrument of political pressure' to acquire Greenland from Denmark (an EU member)
• The EU will suspend the trade deal approval process until tariff threats are removed and there is clarity on the Greenland situation

EU Suspends U.S. Trade Deal Over Greenland Tariff Dispute

The European Parliament suspended approval of a trade deal reached with the United States in July 2024, citing President Trump's proposed tariffs and territorial ambitions regarding Greenland.

Key Developments:

European Parliament member Bernd Lange, chair of the International Trade Committee (INTA), announced the suspension on Wednesday following Trump's address at the World Economic Forum in Davos. The move comes in response to planned U.S. tariffs of 10% to 25% on European nations, which EU officials say violate the terms of the July trade agreement.

Greenland Connection:

Trump reiterated his desire to acquire Greenland "as quick as possible" during his Davos speech, though he ruled out military force—a development Lange called a "small positive element." However, Lange accused Trump of "using tariffs as an instrument of political pressure" to facilitate Greenland's acquisition, describing it as "an attack against the economic and territorial sovereignty of the European Union."

Market Implications:

The suspension creates significant uncertainty for transatlantic trade relations and could impact businesses relying on the agreement. Lange stated there will be "no possibility of compromise" until tariff threats are removed, indicating a potential standoff that could disrupt bilateral commerce and investment flows.

Next Steps:

The EU will hold the trade deal approval process until there is "clarity regarding Greenland and the threats." This development marks a serious escalation in trade tensions between the world's two largest economic blocs, with potential ramifications for global markets and supply chains.