• The EU Parliament has decided to suspend approval of a US trade deal amid tariff threats from President Trump.
• Trump's warnings have escalated tensions, with possible tariffs targeting several EU countries over Greenland.
• The initial trade agreement aimed to reduce tariffs on US goods but is now on hold as markets react negatively.

The European Parliament has announced it will suspend approval of a key trade deal with the United States due to President Donald Trump's threats to impose tariffs related to Greenland. This decision reflects a significant political maneuver in response to escalating tensions between the US and its European allies, as it was planned to be formally announced in Strasbourg on Wednesday, according to Le Monde and BBC.

The proposed trade deal, reached in July 2025 at Trump's golf course in Scotland, successfully reduced US tariffs on European goods from a previously threatened 30% to 15% in exchange for European investments and regulatory adjustments. However, following Trump's recent threats to levy additional tariffs to secure Greenland, prominent figures within the European Parliament have voiced their disapproval, stating that such approval cannot proceed at this time, reports India Times and Le Monde.

Trump's threats include imposing tariffs on goods from various European nations including Denmark, France, and Germany, further intensifying the situation. French officials have condemned these measures as coercive and reminiscent of blackmail tactics, with statements emphasizing the EU's preparedness to retaliate. As financial markets in both regions reacted negatively, the prospect of an escalating trade war has raised alarms, according to BBC and India Times.

Negotiations aimed at refining trade relations had been fruitful in the past, but with the looming deadline for potential EU retaliatory tariffs nearing February 7, the stakes continue to rise. If an agreement is not reached or the deadline extended, the EU has indicated it will activate tariffs worth €93 billion ($109 billion) against US goods, according to India Times and BBC.