EU-US Trade Deal Faces Major Setback Over Greenland Dispute
President Donald Trump's recent tariff threats have thrown the landmark EU-US trade agreement into uncertainty. The deal, originally announced in July 2025, now hangs in limbo as European leaders push back against American demands.
Trump's Tariff Ultimatum Over Greenland
President Trump announced 10% import tariffs on goods from several European nations. The targeted countries include Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Great Britain. These additional tariffs are scheduled to take effect from February 1, 2026.
Trump explicitly linked these tariffs to his ambition to purchase Greenland. He stated that the tariffs would remain in place until the United States achieves what he called "the complete and total purchase of Greenland." The President has not ruled out military action if diplomatic efforts fail, citing national security concerns.
From June 1, 2026, these tariffs will increase dramatically to 25%. This escalation has alarmed European leaders and triggered emergency diplomatic responses.
European Parliament Draws Red Line
Siegfried Muresan, a prominent European Parliament member, declared that the three largest pro-European groups will not ratify the trade deal. The European People's Party Group, The Progressives, and RenewEurope have united in their opposition.
Muresan explained the consequences clearly. "American companies will continue to pay tariffs for exporting to Europe," he wrote in a social media post. The trade deal agreed last year would have eliminated tariffs on American products while imposing 15% tariffs on European goods. That arrangement now appears dead.
"Yesterday's announcement by Donald Trump is not a good deal for the United States of America," Muresan stated firmly. He emphasized the importance of parliamentary democracy, adding, "The European Parliament matters. Parliaments matter in democracies."
Emergency Diplomatic Response
Cyprus, currently holding the rotating EU presidency, has summoned ambassadors for an emergency meeting in Brussels. European nations are coordinating their response to what they perceive as economic coercion.
Countries are reportedly pushing for activation of the Anti-Coercion Instrument. This powerful tool could limit American access to public tenders within the European Union. It might also restrict trade in services where the United States currently enjoys a surplus with Europe.
The pushback from European nations came after some countries already facing 10-15% tariffs sent military personnel to Greenland. This move apparently prompted Trump's latest tariff announcement.
Stability Lost Through Tariff Threats
Muresan elaborated on why postponing ratification makes sense under current circumstances. "By threatening to introduce tariffs on several European countries, President Trump is introducing tariffs on the United States of America," he argued.
He explained the economic logic simply. Last year's agreement would have eliminated tariffs on American products while imposing 15% tariffs on European goods. Since Parliament won't ratify this deal now, American products will continue facing European tariffs.
"Stability would have been the only gain from last year's trade deal between the US and the European Union," Muresan noted. "Today's announcement by President Trump to eventually impose new tariffs on several EU member states takes away that stability. This is why the postponement of the ratification of that trade deal is justified."
Broader Implications for Transatlantic Relations
The EU-US trade deal involved all 27 European Union member states. It aimed to resolve various tariff and trade issues that have long complicated transatlantic commerce. Now that comprehensive agreement faces indefinite delay.
European leaders emphasize that Trump's approach undermines the very stability the trade deal promised. The threat of escalating tariffs over Greenland has transformed what seemed like a straightforward economic agreement into a geopolitical confrontation.
As diplomatic tensions rise, businesses on both sides of the Atlantic face continued uncertainty. The prospect of reduced trade barriers has given way to the reality of potential tariff wars and economic retaliation.
