Exclusive: EU Lawmakers Freeze EU-US Trade Deal After Trump’s Tariff Threats
European Union lawmakers have decided to put the EU-US trade deal on hold after US President Donald Trump threatened new tariffs on European countries. This move is expected to increase tensions between Brussels and Washington ahead of a summit where EU leaders will discuss how to respond to Trump’s actions.
The EU-US trade deal was agreed last summer after weeks of trade tensions. These tensions started when Trump introduced aggressive tariffs after returning to power. Although a political agreement was reached, it still needed formal approval from the European Parliament.
On Wednesday, European lawmakers decided to suspend the process indefinitely. This officially postpones a vote that was planned for next week in the Parliament’s Committee on International Trade. Lead MEPs said the deal cannot move forward while the situation with Trump’s threats remains unclear.
The tensions escalated after Trump announced on social media that he would impose a 10% tariff starting in February on Denmark, Sweden, Norway, France, Germany, the Netherlands, Finland, and the United Kingdom. He said this would continue until “a deal is reached for the complete and total purchase of Greenland.” If no agreement is reached by June, the tariff could rise to 25%.
German MEP Bernd Lange, who leads the Parliament’s trade committee, said Trump had not changed his position after his speech in Davos. “We will prolong the procedure until there is clarity on Greenland,” Lange said.
Many European lawmakers see Trump’s tariff threat as a violation of the EU-US trade deal. The deal already includes 15% US tariffs on EU goods but commits the EU to reduce tariffs on US industrial imports to zero.
Croatian MEP Željana Zovko, handling the trade file for the European People’s Party (EPP), said, “The deal is suspended until we see the willingness of the US to engage seriously with us and stop the tariff threats.”
Before this decision, EU lawmakers had been preparing changes to the deal. Many argued the agreement favored the US more than the EU. On Saturday, leaders of the Parliament’s main political groups – EPP, Socialists & Democrats (S&D), and Renew Europe – had called for suspending the agreement.
EU leaders are set to meet on Thursday night to plan their response to Trump’s threats. Many view his actions as a form of blackmail. Some EU countries, including France and Germany, have suggested using the bloc’s anti-coercion tool, sometimes called the “trade bazooka,” to counter Trump’s tariffs.
The European Parliament is expected to revisit the issue on Monday. A source told Euronews that lawmakers could not reach an agreement in Wednesday’s meeting, but Lange expressed confidence that a deal could be reached by next week.
The suspension of the EU-US trade deal comes at a critical time for transatlantic relations. EU leaders now face the challenge of protecting European trade interests while managing tensions with the US. How Brussels responds to Trump’s demands on Greenland and new tariffs will likely shape the EU-US trade relationship for years to come.
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