E.U. halts approval of U.S. commerce deal after Trump's Greenland tariff menace

[ad_1] The European Union's legislative physique on Wednesday halted work on the formal approval and implementation of the commerce deal it reached final summer season with President Donald Trump.

"Given the continued and escalating threats, together with tariff threats, towards Greenland and Denmark, and their European allies, now we have been left with no different however to droop work" on the deal, stated Bernd Lange, the chairman of the European Parliament's worldwide commerce committee.

"Till the US decides to re-engage on a path of cooperation somewhat than confrontation," no steps to maneuver the deal ahead can be taken, Lange stated in a press release.

"Our sovereignty and territorial integrity are at stake," he added in a post on X . "Enterprise as standard not possible."

The announcement got here after Trump on Saturday stated he would hit seven European Union international locations, plus the U.Ok., with tariffs if they didn't permit the USA to manage Greenland.

The E.U. commerce deal was reached in July throughout a go to by European Fee President Ursula von der Leyen to Trump's golf membership in Turnberry, Scotland.

President Donald Trump and European Fee President Ursula von der Leyen after reaching a commerce deal in Turnberry, Scotland, on July 27, 2025. Jacquelyn Martin / AP The core of the deal was a cap on U.S. tariffs utilized to most imports from the E.U. at simply 15%. The speed was among the many lowest acquired by any buying and selling associate final 12 months.

Some imports from the E.U., similar to generic prescription drugs would have had all tariffs eliminated.

In alternate for the decrease tariff fee, the European Union, America's largest buying and selling associate, would have lowered tariffs on some items it imports from the USA. This could have helped American agricultural and industrial firms promote merchandise into the 27-country bloc.

The overall buying and selling relationship between the U.S. and E.U. was price $1.5 trillion in items and providers yearly, as of 2024. The U.S. imports greater than $600 billion in items from the bloc every year on common, whereas Europeans purchase greater than $360 billion of U.S. items, in line with information from the U.S. Commerce Consultant.

When the so-called "Turnberry deal" was first introduced, the European Fee hailed its potential, saying it "restores stability and predictability."

However all that modified with Trump's Saturday tariff menace.

"In politics as in enterprise, a deal is a deal" Von der Leyen stated on Tuesday on the World Financial Discussion board in Davos, Switzerland. "When pals shake arms, it should imply one thing."

Throughout his personal Davos speech, Trump stated that the U.S. wouldn't use drive to grab Greenland. However he didn't take his menace of a ten% tariff beginning Feb. 1 off the desk.

Lange, the E.U. commerce official, held a press convention following Trump's speech and known as the president's assurances about drive in Greenland "a small optimistic aspect."

Nonetheless, "It's very clear that with this 10%-25% [tariffs] stress, he's actually stepping into a brand new high quality of relation," stated Lange.

So long as Trump's tariff menace stays in place, "There will likely be no chance for compromise" Lange stated.

On Thursday, leaders of the 27 E.U. international locations will meet to debate their coordinated response to Trump's Greenland threats.

This may occasionally embody a bundle of retaliatory tariffs price practically $110 billion, which might impression a variety of U.S. exports, from Boeing airplanes to soybeans to Kentucky bourbon.

One other potential retaliatory measure can be to deploy the bloc's "Anti-Coercion Instrument," a coverage choice typically known as the E.U.'s commerce "bazooka."

The ACI would permit the European Fee to focus on practically any U.S. items or providers in Europe with a variety of restrictions and obstacles.

These may embody funding restrictions, the lifting of mental property protections for American firms, the suspension of enterprise licenses, and outright bans on market entry to the Eurozone.

Initially proposed in 2021 to present the E.U. a strong set of instruments to counter potential Chinese language financial coercion, the commerce bazooka has by no means been deployed earlier than.