• The EU has officially suspended work on the US trade deal due to President Trump's tariff threats.
• Tariffs on European goods raised fears of a trade war, with significant market reactions.
• The chair of the European Parliament's trade committee emphasized that "business as usual is impossible."

The European Parliament has decided to suspend approval of the EU-US trade deal, initially agreed upon in July, in response to U.S. President Donald Trump's demands regarding Greenland and threats of new tariffs against several European nations. The suspension is expected to be formally announced in Strasbourg, underscoring escalating tensions between Washington and its European allies, according to India Times and Reuters.

On January 26-27, the EU Parliament was scheduled to vote on legislation to remove certain tariffs as part of the trade deal; however, these plans have been postponed. Bernd Lange, the chair of the trade committee, stated, "Now official: EU-US deal is on hold until further notice!" indicating a serious disruption triggered by Trump's renewed tariff threats, according to India Times and Anadolu Agency.

The implications of these tariff threats have already impacted market dynamics, with European stock indices experiencing declines and the Dow and S&P 500 also reporting losses. European leaders have condemned the U.S. actions as coercive, and the EU remains committed to addressing these concerns diplomatically, as articulated by Danish Foreign Minister Lars Løkke Rasmussen, who emphasized that diplomatic channels remain open, according to India Times.