EU Freezes Trade Deal With US After New Trump Tariffs Over Greenland Demand

Last Updated:January 18, 2026, 07:53 IST

European People’s Party (EPP) President Manfred Weber said that while there had been broad approval for the trade agreement, the process could not move forward.

Manfred Weber, president of the European People's Party and US President Donald Trump | File Image

The European Union on Saturday said negotiations on a proposed EU–US trade deal have been put on hold following President Donald Trump’s decision to impose fresh tariffs on Denmark and several other European countries, linking the move to his renewed push to acquire Greenland.

European People’s Party (EPP) President Manfred Weber said that while there had been broad approval for the trade agreement, the process could not move forward amid Trump’s threats over Greenland.

“The 0 per cent tariffs on US products must be put on hold," Weber said in a post on X, citing concerns over Washington’s latest actions.

European Commission President Ursula von der Leyen warned that the new tariffs risk damaging transatlantic ties.

“Tariffs undermine transatlantic relations and risk a dangerous downward spiral," she said, stressing that Europe would uphold its sovereignty and remain united.

She underlined that territorial integrity and sovereignty are core principles of international law and are vital for Europe and the global community.

Von der Leyen also reiterated the EU’s support for Denmark and Greenland, saying the bloc stood “in full solidarity" with both.

She noted that Europe remains committed to dialogue and to continuing discussions initiated last week between the Kingdom of Denmark and the United States.

Reacting to the tariff announcement, Swedish Member of the European Parliament Karin Karlsbro said lawmakers had not ruled out using the EU’s anti-coercion instrument, often referred to as the “bazooka," to respond with punitive measures.

She told Politico that there was little chance the European Parliament would approve the tariff agreement at its upcoming vote, adding that the EU must be ready to counter Trump’s tariff pressure, including measures affecting Sweden.

The dispute threatens to unravel a deal struck last July, under which tariffs on European goods were set at 15 per cent, while the EU agreed to purchase $750 billion worth of US energy and increase investments in the United States by $600 billion.

At the time, Trump had called it “the biggest deal ever made," while von der Leyen said it would bring stability and predictability to EU–US trade ties.

Trump announced that the new 10 per cent tariffs would take effect on February 1 and apply to Denmark, Sweden, France, the United Kingdom, Germany, Finland, Norway and the Netherlands.

In a post on Truth Social, he said the tariffs would remain in place until a deal was reached for the “complete and total purchase of Greenland," claiming that the US had long subsidised Europe by not imposing tariffs.

Arguing that Greenland is critical to US national security, Trump has repeatedly said Washington needs control of the island, warning that “world peace is at stake" and alleging interest from China and Russia.

His remarks have heightened tensions, prompting Denmark and other European nations to step up joint military exercises in Greenland.

The move has also drawn criticism from within the US. Republican Senator Thom Tillis warned that the tariffs would harm American businesses and strain relations with allies, while Senator Lisa Murkowski cautioned that the escalating rhetoric was forcing NATO partners to divert attention and resources, potentially undermining the alliance’s stability.

News world EU Freezes Trade Deal With US After New Trump Tariffs Over Greenland Demand

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