EU needs 'greater clarity' on Trump's Greenland intentions after he backs down on tariffs, senior lawmaker tells CNBC

• Bernd Lange, chair of the European Parliament's international trade committee, stated EU countermeasures worth 93 billion euros ($108 billion) on U.S. imports are 'on hold' rather than 'off the table' and may be prolonged for months
• Trump announced a 'framework' or 'concept of a deal' with NATO Secretary General Mark Rutte regarding Greenland, though details remain unclear
• EU leaders emphasized that any Greenland deal should be decided by Denmark and Greenland's people, not between Trump and NATO officials, and will seek direct contact with U.S. counterparts for greater certainty

Summary: EU Seeks Clarity on Trump's Greenland Plans After Tariff Reversal

President Trump has backed down on planned tariffs against eight European nations, easing immediate trade tensions with the EU. The U.S. president announced he had reached "the framework of a deal" and "the concept of a deal" regarding Greenland following discussions with NATO Secretary General Mark Rutte at the World Economic Forum in Davos.

Key Developments:

EU lawmakers have suspended threatened countermeasures after Trump canceled the levies, which were initially imposed over European opposition to his Greenland annexation bid. Bernd Lange, chair of the European Parliament's international trade committee, confirmed that planned countermeasures on €93 billion ($108 billion) worth of U.S. imports—set to take effect in February—are now "on hold" rather than "off the table."

Market Implications:

The EU had suspended ratification of a trade pact agreed in July 2023 in response to Trump's initial tariff threats. With the immediate tariff threat removed, trade tensions have temporarily eased, though uncertainty remains around long-term EU-U.S. trade relations.

Concerns and Next Steps:

Lange emphasized the EU requires "greater clarity" on Trump's intentions, noting that details of the purported Greenland deal remain unclear. He stressed that any decisions should be made by Denmark and Greenland's people, not through negotiations between "two important men." EU leaders are proceeding with their emergency summit in Brussels as planned to assess the situation, contact U.S. counterparts, and ensure both sides respect existing trade agreements. The countermeasures list remains legally valid and could be extended for several months pending further developments.