US-EU Trade Deal on Hold Following Tariff Threats
Brussels, EU — The European Parliament has formally suspended approval of a major trade deal with the United States.
Lawmakers made the decision in reaction to recent threats by US President Donald Trump over tariffs and geopolitical demands tied to Greenland.
The deal was first agreed last July 2025 during talks between Trump and European Commission President Ursula von der Leyen.
It aimed to reduce tariffs and expand trade flows between the EU and US.
What Triggered the Suspension
The suspension follows threats by President Trump to impose new tariffs on several EU countries unless the US is allowed to pursue control of Greenland.
European lawmakers called the threats economic coercion and said they undermined the spirit of cooperation needed to approve the trade deal.
Bernd Lange, chair of the European Parliament’s international trade committee, described the situation as “business as usual impossible.”
He said the Parliament would not debate or vote on the deal until the US returns to a constructive approach.
Political and Economic Impacts
The decision has intensified tensions between Brussels and Washington.
EU officials warn that suspending the deal could disrupt global markets and unsettle transatlantic relations.
European leaders may consider retaliatory tariffs against the US if the dispute escalates further.
Markets have reacted with volatility, as investors weigh the potential for broader trade conflict.
What Happens Next
The EU‑US deal still exists as an agreement in principle, but it cannot become law without Parliament’s backing.
The European Commission will likely seek further talks with US officials to resolve the impasse.
Trade and foreign policy experts say the outcome will shape the future of transatlantic economic ties and could influence other global trade negotiations.
Both sides continue to emphasize the importance of cooperation despite the current suspension.
