President of the European Commission Ursula von der Leyen participates in a press conference after attending a special summit of European Union leaders to discuss transatlantic relations following U.S. President Donald Trump's threats to impose new tariffs on goods from a list of EU countries over his demand to acquire Greenland, in Brussels, Belgium January 23, 2026. REUTERS/Yves Herman
Press conference after special summit to discuss transatlantic relationship
The European Parliament has taken the rare step of suspending its work on a trade agreement with the United States, underscoring rising political tensions in transatlantic relations. The decision, made on Jan. 21 in Brussels, followed repeated remarks by U.S. President Donald Trump regarding Greenland, including assertions that the United States has a “right” to take control of the Arctic territory and warnings of potential tariffs on European allies who oppose those views, Reuters reported.
The stalled agreement, negotiated between Washington and the 27-member European Union, aimed to reduce EU import duties on certain U.S. industrial goods and preserve zero-tariff treatment for products such as U.S. lobster. While the European Commission and EU member states have implemented elements of the arrangement, formal approval by the European Parliament is required for full ratification.
Lawmakers have long raised concerns that the deal would disproportionately benefit the United States by requiring deeper tariff reductions from the EU while leaving U.S. duty levels largely intact. Prior to the suspension, negotiators had discussed safeguards, including a temporary sunset clause and measures to address sudden import surges, to mitigate those concerns. (Reuters)
Trade committee chair Bernd Lange said new U.S. tariff threats had undermined the political consensus needed to proceed. The parliament had been expected to set its formal position later that week, but the process has now been paused indefinitely, according to Reuters.
The move highlights how geopolitical disputes, in this case over Greenland, can spill into economic policy and disrupt long-running trade negotiations, according to Reuters.
Source: Reuters, “EU lawmakers stall US trade deal in protest over Greenland,” Jan. 21, 2026.
