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EU-US trade deal ‘on hold’ after new Trump tariffs

BRUSSELS — A landmark transatlantic trade deal will not be approved by EU lawmakers after U.S. President Donald Trump hit European countries with new tariffs as part of his efforts to wrest control of Greenland from Denmark.

Confirmation that the European Parliament will not move forward with ratification of the agreement, signed by Trump and European Commission President Ursula von der Leyen in July last year, casts the future of the trade war truce into uncertainty.

In a statement online, Manfred Weber, the president of the European People’s Party (EPP), said that the escalating U.S.-Europe tensions meant the Parliament would not vote in favor of the pact, which sets U.S. tariffs on imports from the EU at 15 percent in exchange for the bloc not applying levies on American exports.

“The EPP is in favor of the EU-U.S. trade deal, but given Donald Trump’s threats regarding Greenland, approval is not possible at this stage,” Weber wrote. “The 0 percent tariffs on U.S. products must be put on hold.”

While other members of von der Leyen’s governing coalition — the center-left S&D, centrist Renew and left-wing Greens — had been pushing for a strategic pause on the implementation of the trade deal in recent weeks, her own EPP had remained unconvinced until now.

On Wednesday, lawmakers delayed a decision on whether to freeze ratification amid tensions over Trump’s demand that Denmark hand over Greenland to the U.S. A vote had been expected on Jan. 26, laying out the European Parliament’s position on lifting tariffs on U.S. industrial goods — one of the key planks of a deal struck between Brussels and Washington last summer. The deal with Washington “will not be postponed,” EPP lawmaker Željana Zovko said at the time.

Karin Karlsboro — the Swedish MEP who serves as coordinator on trade for Renew — told POLITICO on Saturday that the EU-U.S. deal would not find sufficient support from lawmakers.

“I see no possibility for the European Parliament to give the green light to move forward with the tariff agreement when we take a decision on Wednesday. Instead, the EU must prepare to respond to President Trump’s tariff attacks, including those targeting Sweden,” she said. “We cannot rule out either retaliatory tariffs or the use of the ‘bazooka’ if the pressure and coercion continue.”

The EU’s so-called trade “bazooka,” or Anti-Coercion Instrument, offers a range of punitive measures that can be used against trade rivals that try to threaten the bloc. Among them are restrictions on investments and access to public procurement schemes, as well as limits on intellectual property protections.

The S&D’s vice president for trade, Kathleen Van Brempt, joined calls for the use of the instrument late Saturday.

“It is nothing short of outrageous that Donald Trump is using tariffs and economic threats to force through an illegitimate territorial claim,” Van Brempt said in a statement. Approving the trade deal, she said, “would not be ‘pragmatic’, but downright foolish,” she said.

“If this is not coercion, then what is?” Van Brempt added.

Trump on Saturday announced a 10 percent additional tariff on European countries that have contributed troops to a small deployment that arrived in Greenland earlier this week. The levy will increase to 25 percent starting June 1, he declared, and will remain in force “until such time as a Deal is reached for the Complete and Total purchase of Greenland.”

European leaders have reacted with fury, insisting that the deployment to Greenland is a response to Trump’s claims of growing Russian and Chinese threats to the island in the North Atlantic. European Council President António Costa warned Washington that the new tariffs will be met with a “joint response.”

Camille Gijs contributed reporting.

LP Staff Writers

Writers at Lord’s Press come from a range of professional backgrounds, including history, diplomacy, heraldry, and public administration. Many publish anonymously or under initials—a practice that reflects the publication’s long-standing emphasis on discretion and editorial objectivity. While they bring expertise in European nobility, protocol, and archival research, their role is not to opine, but to document. Their focus remains on accuracy, historical integrity, and the preservation of events and individuals whose significance might otherwise go unrecorded.

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