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EU to reportedly suspend trade deal with US

In a historic rupture of transatlantic ties, the European Union has officially called for a pause in the ratification of its landmark trade deal with the United States as of January 18, 2026.

This “freeze” is a direct response to President Donald Trumpโ€™s announcement of a 10% tariff on eight European nationsโ€”including Denmark, France, and Germanyโ€”following their opposition to his plan to purchase Greenland.


The Suspension: “Stability is Gone”

The trade deal, which was struck in July 2025 and aimed at reducing tariffs on US imports to 0%, was in its final stages of approval. However, following Trumpโ€™s Saturday Truth Social post, EU lawmakers have pulled the plug.

  • Ratification Halted: Siegfried Mureศ™an, Vice-President of the European Peopleโ€™s Party (EPP), confirmed the delay, stating that the “stability” promised by the deal has been destroyed by the new tariff threats.
  • The “Bazooka” Option: Manfred Weber, head of the EPP, declared that zero-tariff treatment for US products is no longer possible. Lawmakers are now urging Brussels to activate the Anti-Coercion Instrument (ACI)โ€”the EU’s most powerful trade defense tool.
  • Retaliation Strategy: The EU is considering “mirror tariffs,” new taxes on American tech giants, and restricting US firms from bidding on European public contracts.

Context: The Greenland Standoff

Trumpโ€™s 10% tariff (set to take effect February 1, 2026) specifically targets countries that have rallied around Denmarkโ€™s sovereignty or sent symbolic troops to the Arctic for defense exercises.

TimelineAction
Jan 17, 2026Trump announces 10% tariffs on 8 EU/NATO allies.
Jan 18, 2026EU Ambassadors convene for an emergency meeting in Brussels.
Feb 1, 202610% US Tariffs scheduled to begin.
June 1, 2026US Tariffs scheduled to jump to 25% without a buyout deal.

Global Leadership Responses

The unified front from Europe suggests a “dangerous downward spiral” in relations:

  • Ursula von der Leyen (EU Commission President): Warned that the tariffs would “undermine transatlantic relations” and risk a trade war.
  • Antรณnio Costa (European Council President): Affirmed “full solidarity” with Denmark and noted that territorial integrity is a fundamental principle of international law.
  • Emmanuel Macron (France): Labeled the threats “unacceptable,” stating that “no intimidation or threat” would influence Europeโ€™s stance on Greenland.

Next Steps for the EU

The EU Trade Committee is scheduled to meet on Wednesday, January 21, to formally vote on the suspension. If passed, it will mark the most significant breakdown in US-EU economic cooperation since the formation of the bloc.

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