&imwidth=800&imheight=600&format=webp&quality=medium "In major escalation, European Union stalls US trade deal after Trump threatens tariffs over Greenland")
European Union lawmakers decided to hold off ratifying a trade deal finalised between the European bloc and the United States after President Trump issued tariff threats over Greenland, the group's main political body confirmed on Tuesday (Jan 20). The European Parliament was planned to hold a vote in the coming week on removing tariffs on US exports as part of the agreement. AFP reported.
The move comes after US Treasury Secretary Scott Bessent urged calm over President Trump's tariff threat as the trade relationship between the European Union and the United Kingdom sharply deteriorated over the Greenland standoff. He warned that the "worst thing these countries can do is escalate against the United States," while citing last year's tariff war that broke out between the Washigantion and Beijing after China escalated imposing retaliatory tariffs on the United States.
The tensions between the European countries and the United States escalated after the US president announced sweeping tariffs on several countries of the European Union and the United Kingdom over opposition to his goal of acquiring Greenland.
He announced 10 percent tariffs effective February 1 against Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland for opposing his plans to acquire Greenland adding that "On June 1st, 2026, the Tariff will be increased to 25%. This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland".
Multiple European nations opposed Trump's territorial ambitions and emphasised the need of upholding sovereignty of Denmark. Moreover, to counter the US tariff threat, France's President Emmanuel Macron called for the European Union to exercise its powerful anti-coercion instrument against the United States if President Donald Trump imposes tariffs against the European countries.
Also Read: AI, tariffs and bullying: Trump’s Greenland and Gaza power play draws ‘international gangster’ tag
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Despite strong reservations expressed by the European Countries, Trump restated his desire to acquire Greenland, saying "Greenland is imperative for National and World Security. There can be no going back -- On that."
Trump on Monday claimed that his phone conversations with NATO Secretary-General Mark Rutte led to an agreement on holding a meeting with various parties on the Greenland issue on the sidelines of the World Economic Forum in Davos, Switzerland.
