A key group of European Parliament members blocked a vote to ratify a US-European trade deal Wednesday after President Donald Trump threatened to take over Greenland and charge as much as an additional 35% tariff on countries opposed to his ambitions.
“EU-US Deal on ice indefinitely!” Bernd Lange, chair of Parliament’s trade committee, said in a post on X.
It’s unclear if the entire trade agreement, which called for 15% tariffs on European Union goods shipping to the US, has been called off or if parts that have already gone into effect will remain that way. The EU and the US came to a preliminary deal in July, putting much of it into effect before it was signed.
The news came as Trump told the World Economic Forum in Davos, Switzerland that he did not intend to use force to acquire Greenland. But he emphasized repeatedly a demand that Europe effectively give Greenland to the United States.
“He wants to have Greenland as part of the United States as quick as possible, and he wants to have a table where we could discuss about the price he wants to buy,” Lange said Wednesday at a press conference in Strasbourg, France.
Beyond the 15% tariff rate, the agreement called for the EU to increase purchases of American agricultural and energy products. Lange accused the US of violating the terms of the agreement by threatening additional tariffs.
“Until the threats are over, so there will be no possibility for compromise,” Lange added. He seemed to suggest, though, that the EU’s commitments to purchase American military and energy products will stick.
Trump’s tariff threats over Greenland triggered an emergency meeting of European countries’ representatives over the weekend, and French President Emmanuel Macron reportedly asked the European Union to activate its so-called anti-coercion instrument, colloquially known as a “trade bazooka.” That could involve suspending US company licenses or taxing US services. Collectively, trade between the US and EU was nearly $1 trillion in 2024, according to data from the US Commerce Department. A trade war between the two economies could have profound impacts for all involved.
EU leaders are set to meet in Brussels on Thursday to discuss how to retaliate if Trump’s latest tariff threats are enacted.
But Trump’s ability to follow through on his tariff threat likely hinges upon a case now before the Supreme Court challenging his most sweeping levies. The nation’s highest court is expected to issue a ruling soon.
By CNN
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