European Parliament Halts EU-US Trade Deal Ratification Over Trump’s Greenland Threats
Major political groups confirm suspension of agreement, citing recent U.S. statements.
The European Parliament has suspended the ratification of the trade agreement between the European Union and the United States following recent geopolitical tensions sparked by U.S. President Donald Trump’s remarks on Greenland.
Iratxe García Pérez, President of the Socialists and Democrats, told reporters that “there is a majority agreement” among political groups to pause the deal, which had been negotiated last year.
Political Divisions in the Parliament
The European People’s Party (EPP), the largest bloc in the Parliament, confirmed that discussions over the trade agreement have been frozen. The deal originally envisioned a 15% tariff on European exports to the U.S. while eliminating tariffs on American exports to the EU. EPP leader Manfred Weber described the EU’s leverage over U.S. market access as “extremely powerful,” a sentiment echoed by Valérie Hayer, President of the centrist Renew group, who added that “businesses would be unlikely to abandon the European market.”
However, the move is not universally supported. Nicola Procaccini, co-chair of the Eurosceptic European Conservatives and Reformists, criticized the suspension, calling it “wrong.” Meanwhile, the far-right “Patriots” group, led by French MEP Jordan Bardella, backed the decision to suspend the agreement.
Implications for EU–US Trade
The suspension effectively prevents the agreement from being ratified and implemented in the short term. Political groups remain divided on potential countermeasures against U.S. threats. While the EPP and Procaccini advocate for de-escalation, other groups support activating the European Anti-Coercion Instrument (ACI), a tool designed to protect EU interests by restricting access to public tenders or other economic levers—a mechanism often described as Europe’s “economic bazooka.”
Experts suggest that the freeze underscores the EU’s growing sensitivity to unilateral U.S. actions that could disrupt trade relations. Analysts note that, while the immediate impact on businesses may be limited, prolonged uncertainty could affect investment decisions and market planning for European exporters.
The decision also highlights the complexity of EU–US relations, as trade policies intersect with broader geopolitical disputes, signaling potential long-term shifts in transatlantic cooperation.
