EU May Block US Trade Deal Over Greenland Tariff Threat

The future of the EU-US trade agreement is in jeopardy after US President Donald Trump threatened fresh tariffs over his interest in purchasing Greenland, prompting a key European political leader to call for a halt to the deal's ratification.

Manfred Weber, leader of the European Parliament's largest political group, the European People's Party (EPP), announced that progress on the trade pact is now impossible under the current conditions.

In a social media post, Weber clarified that while the EPP supports the trade agreement in principle, Trump's latest threats make approval impossible. He also called for the suspension of EU commitments to lower tariffs on US goods.

Trump's Greenland Gambit Sparks Backlash

The controversy ignited after President Trump announced a 10% additional tariff on products from European countries that support Greenland, set to take effect on February 1.

Trump stated that the tariff rate could climb to 25% and remain "until an agreement is reached for the complete and definitive purchase of Greenland." This move was met with immediate and strong criticism across Europe.

European Commission President Ursula von der Leyen warned the tariffs would "weaken transatlantic relations and increase the risk of a dangerous downward spiral." French President Emmanuel Macron labeled Trump's threats "unacceptable."

A Trade Deal Already Under Strain

The trade agreement was originally brokered by von der Leyen and Trump last summer to de-escalate trade tensions. While some parts of the deal have been implemented, it requires full approval from the European Parliament to take effect.

If EPP members join with left-leaning groups in the parliament, they could secure enough votes to delay or completely block the agreement's passage.

The core of the deal involved:

• The US imposing a 15% tariff on most EU-origin products.

• The EU eliminating tariffs on US industrial goods and some agricultural products.

However, many members of the European Parliament already viewed the agreement as unbalanced in favor of the US. Criticism grew after the Trump administration extended its existing 50% tariffs on steel and aluminum to cover hundreds of additional EU products after the initial deal was struck.

European Parliament Puts Ratification on Hold

Bernd Lange, chairman of the European Parliament's Trade Committee, emphasized that respect for national sovereignty is a fundamental condition for any trade deal. In response to Trump's statements, Lange argued that all work on implementing the agreement should be suspended until the threats are withdrawn.

He also raised the possibility of the EU activating its "anti-coercive instrument" (ACI), a tool designed to counter economic pressure that has never been used before.

Meanwhile, US officials have also voiced frustration. Last month, US Trade Representative Jamieson Greer criticized the EU for failing to fulfill its obligations under the agreement, specifically pointing to regulations targeting technology companies.