EU set to halt US trade deal over Trump's new tariff threat

Richard Bravo, Bloomberg News on Jan 17, 2026

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European Union lawmakers are poised to halt approval of the EU’s trade deal with the U.S. over President Donald Trump’s vow to impose tariffs on countries that supported Greenland in the face of American threats.

Manfred Weber, president of the European People’s Party, the largest political group in the European Parliament, said on Saturday that agreement with the U.S. is no longer possible.

“The EPP is in favor of the EU-US trade deal, but given Donald Trump’s threats regarding Greenland, approval is not possible at this stage,” Weber posted on social media. He added that the EU agreement to lower tariffs on “US products must be put on hold.”

The EU-U.S. trade agreement, which European Commission President Ursula von der Leyen struck with Trump last summer, has already been partially implemented but still needs a nod from parliament. If EPP lawmakers join left-leaning political groups, it’s likely they’ll have enough votes to delay or block approval.

The trade agreement set a 15% U.S. tariff for most EU goods in exchange for a pledge by the EU to eliminate duties on U.S. industrial goods and some agricultural products. Von der Leyen, who oversees trade negotiations for the EU, made the deal in the hopes of avoiding a full-blown trade war with Trump.

A vocal faction of EU lawmakers have long railed against the agreement, arguing it was too lopsided in favor of the U.S. That anger has deepened as the U.S. expanded a 50% tariff on steel and aluminum to hundreds of additional EU products after the July accord.

U.S. Trade Representative Jamieson Greer criticized the EU last month for not following through on aspects of the agreement, particularly in regards to the bloc’s regulation of tech companies.

Trump on Saturday announced a 10% tariff as of Feb. 1 on goods from European countries that have rallied to support Greenland in the face of U.S. threats to seize the semi-autonomous Danish territory. He said the levies would increase to 25% unless and until “a Deal is reached for the Complete and Total purchase of Greenland.”

The announcement drew a quick rebuke from European leaders, who are working out the next steps. Von der Leyen said in a statement that “tariffs would undermine transatlantic relations and risk a dangerous downward spiral” while French President Emmanuel Macron dismissed Trump’s threats as “unacceptable.”

As a result of the latest moves, passage of the trade deal has become more complicated.

“It is clear that national sovereignty of any country needs to be respected by all partners of the trade deal,” Bernd Lange, the longtime chair of European Parliament’s trade committee who helps oversee the discussion on ratifying the trade deal, said in an interview this week.

Following Trump’s announcement Saturday, Lange posted on social media that work on implementing the trade accord with the U.S. should be suspended until Trump’s threats ceased. He also called for the EU to use its anti-coercion instrument, the bloc’s most powerful retaliatory trade tool.

The ACI, which has never been used, was designed primarily as a deterrent, and if needed, to respond to deliberate coercive actions from third countries that use trade measures as a means to pressure the policy choices of the EU or its members.

Those measures could include tariffs, new taxes on tech companies or targeted curbs on investments in the EU. They could also involve limiting access to certain parts of the EU market or restricting firms from bidding for public contracts in Europe.

The parliament has been in a wait-and-see mode for days. Members of Lange’s trade committee met Wednesday for an initial discussion about tying Greenland’s sovereignty to the U.S. trade deal and decided to reconvene in a week.

Per Clausen, a Danish MEP with The Left, gathered 30 signatures for a letter sent Wednesday to Parliament leaders urging them to “freeze” the trade deal “as long as claims for Greenland and threats are made by the U.S. administration.”

“It would seem extremely strange if we were to enter into an agreement with the U.S. now,” Clausen said in an interview. “This would be a clear signal that, from the EU’s side, we are prepared to use the instruments we now have vis-a-vis the U..S if they continue their aggression.”