U.S. President Donald Trump attends the 56th annual World Economic Forum (WEF) in Davos, Switzerland, January 21, 2026. REUTERS/Romina Amato TPX IMAGES OF THE DAY
(Europe / DC) – The European Union has abruptly halted approval of its landmark U.S. trade deal following President Donald Trump’s latest tariff threat tied to Greenland – triggering fears of an all-out transatlantic trade war.
The move was announced Wednesday by Bernd Lange, chairman of the European Parliament’s international trade committee, who said escalating U.S. pressure left the bloc with “no alternative” but to suspend work on the agreement.
“Given the continued and escalating threats, including tariff threats, against Greenland and Denmark and their European allies, business as usual is impossible,” Lange said.
The Deal
The so-called Turnberry deal, reached last July during talks between Trump and Ursula von der Leyen in Scotland, would have capped U.S. tariffs on most European imports at just 15%, one of the lowest rates granted to any trading partner.
Some EU exports, including generic pharmaceuticals, were set to see tariffs eliminated entirely. In return, Europe agreed to lower tariffs on key U.S. goods, boosting American agricultural and industrial exports across the 27-nation bloc.
The US/EU trade relationship is massive: roughly $1.5 trillion in goods and services annually.
