Politico: EU Prepares Trade 'bazooka' For Trump
- 18.01.2026, 10:10
What will be the response to US duties in the dispute over Greenland?
A landmark transatlantic trade agreement will not be approved by EU lawmakers after US President Donald Trump imposed new duties against European countries as part of his attempts to gain control of Greenland from Denmark.
The confirmation that the European Parliament will not give the go-ahead to ratify the agreement signed by Trump and European Commission President Ursula von der Leyen last July calls into question the future of the trade war truce, writes Politico.
The leader of the European People's Party (EPP), Manfred Weber, said escalating tensions between the US and Europe meant parliament would not vote in favor of the pact. That agreement set US tariffs on imports from the EU at 15% in exchange for the bloc not applying duties on US exports.
"The EPP is in favor of a trade deal between the EU and the US, but given Donald Trump's threats over Greenland, approval is not possible at this stage. Zero tariffs on American goods must be suspended," Weber wrote.
While other members of von der Leyen's ruling coalition - the center-left (S&D), centrists (Renew) and the left-wing Greens - have in recent weeks pushed for a strategic pause on the trade deal, her own EPP party has so far remained adamant.
On Wednesday, lawmakers postponed a decision to freeze ratification amid tensions over Trump's demand that Denmark hand Greenland to the United States.
The vote was expected on January 26 and was expected to determine the European Parliament's position on eliminating tariffs on manufactured goods from the United States, one of the key points of the deal struck by Brussels and Washington last summer. MEPs are now expected to confirm a freeze on the deal at a meeting next Wednesday.
On Saturday, January 17, Trump announced an additional 10 percent tariff on European countries that contributed troops for the small contingent that arrived in Greenland earlier this week.
The fee will increase to 25 percent on June 1, he said, and will be in place "until a deal is reached on the full and final purchase of Greenland."