The European Parliament has taken a decisive first step in a burgeoning transatlantic trade war, voting to suspend the ratification process of a major commercial agreement with the United States. The move is a direct response to threats from President Donald Trump to impose punitive tariffs on eight European nations to force the sale of Greenland.
A Powerful Lever Withheld
Parliamentary leaders confirmed the freeze on Tuesday, January 20. The agreement, finalized in summer 2025, would have imposed a 15% tariff on EU exports to the US while eliminating duties on American goods entering the European market. By halting its ratification, the EU denies US companies tariff-free access, wielding what Manfred Weber, head of the center-right EPP group, called “a very powerful tool.”
“It is an extremely powerful lever. I do not believe companies will agree to give up the European market,” added Valérie Hayer, president of the centrist Renew group.
Trigger: Tariff Threats Over Greenland
The parliamentary action follows President Trump’s explicit threat to impose new tariffs of 10% starting February 1—potentially rising to 25% by June 1—on Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom. Trump stated these measures would remain until “a complete and total sale of Greenland” is agreed upon. Greenland is an autonomous territory of Denmark, a member of both the EU and NATO.
Political Unity and Division
There is a “majority agreement” among political groups to freeze the trade deal, according to Iratxe García Pérez, president of the Socialists and Democrats (S&D) group. This position was backed by the largest group, the EPP, as well as Renew and S&D.
However, the far-right was split. The European Conservatives and Reformists (ECR) group opposed the freeze, with co-president Nicola Procaccini calling it “a mistake.” In contrast, the Patriots group, led by French MEP Jordan Bardella, supported the suspension, arguing that a “balance of power” is now necessary when dealing with Trump’s America.
Debate Over the “Anti-Coercion Bazooka”
While united on freezing the trade deal, political groups are divided on deploying more aggressive countermeasures. The European Union’s Anti-Coercion Instrument, a powerful tool that could restrict US companies from European public procurement markets, is a point of contention.
The EPP and ECR have called for “de-escalation” and oppose activating the mechanism. Other political families in Parliament, however, support using what some term the European economic “bazooka” to respond to the threats over Greenland’s sovereignty.
The suspension of the trade deal ratification prevents its implementation, marking a significant escalation in the EU’s strategy to counter American economic pressure.
