EU To Put Trade Agreement With US On Hold

The European Union has suspended ratification of its landmark trade agreement with the United States following US President Donald Trump's announcement of tariffs linked to his demands over Greenland.
The European Parliament, where a vote was anticipated by month's end, now faces an indefinite delay as major political groups unite in opposition.
Trump imposed a 10 per cent tariff on EU nations, set to rise to 25 per cent from June unless a deal is reached for the "complete and total purchase" of Greenland from Denmark.
This measure targets countries deploying troops to the Danish territory amid rising tensions in the North Atlantic, which Trump cites as vital for US security against Russian and Chinese activities.
The trade deal, negotiated last summer between Commission President Ursula von der Leyen and Trump at a Scottish golf course, established a baseline 15 per cent US tariff on most EU exports while eliminating duties on many American industrial goods. Valued at stabilising transatlantic commerce after prior disputes, it promised zero tariffs on key US products entering Europe, but approval hinged on parliamentary consent.
European Parliament leaders from the EPP, S&D, and Renew groups swiftly reacted, with EPP chairman Manfred Weber declaring ratification impossible under tariff threats. "The zero tariffs on American products must be suspended," Weber stated on X, echoing calls from Renew's Valérie Hayer and S&D's Kathleen Van Brempt to invoke the EU's Anti-Coercion Instrument.
This instrument empowers the EU to retaliate with measures beyond tariffs, including restrictions on US investments, public procurement access, and intellectual property rights. Belgian MEP Van Brempt urged forming a global coalition of like-minded partners to counter what she termed blatant coercion. French President Emmanuel Macron reportedly backs its activation, per his entourage.
Trump's Greenland fixation revives a 2019 controversy, where he first floated buying the resource-rich Arctic territory for missile defence and maritime surveillance. Recent EU-Danish military deployments there, aimed at countering external threats, prompted the tariffs against eight nations including Denmark, Sweden, France, and Germany.
Greenland protests erupted in Denmark and the territory itself against US overtures, with Trump refusing to rule out force and dismissing diplomatic pacts as insufficient. European Council President Antonio Costa vowed a "joint response" if tariffs persist, while Belgian Foreign Minister Maxime Prévot decried the move as "incomprehensible" and alliance-undermining.
A prior €93 billion EU retaliation package from last year, targeting US cars to poultry with up to 30 per cent duties, stands ready for revival post a June deadline. The EU initially shelved it upon striking the trade deal, but Trump's actions have reignited preparations.
Critics in the Parliament already viewed the pact as imbalanced, with Europe slashing most import tariffs while US rates averaged 15 per cent. Delaying ratification risks Trump's further ire and escalated tariffs, yet proceeding amid coercion would undermine EU sovereignty.
Brussels weighs diplomatic overtures alongside retaliation, seeking to avert a full trade war that could disrupt billions in bilateral commerce. Emergency summits loom as transatlantic ties, strained by NATO frictions, face fresh tests. The saga underscores Trump's aggressive territorial ambitions clashing with allied resolve.
Agencies
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