Europe doesn't hold back on Trump's tariff threat — and his next move was totally unexpected
President Donald Trump defied opposition against his bid to acquire Greenland by threatening his own NATO allies in Europe with tariffs. But the European Parliament has hit back by suspending a key EU trade agreement with the United States in response to his aggressive stance. The Guardian reported that Bernd Lange, head of the European Parliament trade committee, asserted that until “the threats [on Greenland] are over, there will be no possibility for compromise.” The news of the suspension arrived from Strasbourg right in time for Trump's speech at the Davos World Economic Forum. This ruling reflects growing trade tensions between the US and Europe and has sparked worries about a possible trade war, as per the BBC.
Following an agreement at Trump's Turnberry golf course in July that lowered US tariffs on the majority of European goods from 30% to 15%, trade tensions between the US and Europe had subsided. Europe consented to increase US exports and make investments in the US. However, in response to Trump's latest threats targeting Greenland, the legislative proposals relating to the Turnberry transaction stand suspended. Initially announced in reaction to Trump's "Liberation Day" tariffs, the EU's possible imposition of tariffs on $108 billion worth of American goods has been extended. Unless the EU chooses to prolong the delay or ratify the new agreement, these taxes, which were previously on hold during trade pact negotiations, are scheduled to take effect on February 7.
Lange refused to comment on the implications of the suspension and asserted that it would take "some time" to resolve the issue. "We have to look at what this so-called solution would mean," he said. However, he remained firm over the EU's stance and opposition against Greenland's acquisition by the US government. Meanwhile, Trump has backed out of the alleged 10% tariff threat on Greenland's allies after the EU suspended the US Turnberry trade deal. In a supposed 'framework' he posted on Truth Social, "I will not be imposing the Tariffs that were scheduled to go into effect on February 1st."
He further stated that after a productive meeting with NATO Secretary General Mark Rutte, a framework for a future deal regarding Greenland and the Arctic has been established, benefiting the U.S. and NATO Nations. Ongoing discussions are focused on the Golden Dome related to Greenland. Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff will be responsible for the negotiations. With business worth more than $1.9 trillion in 2024, the US and the EU are each other's crucial trading partners. However, with the recent developments, the trade tensions seem to have gone up as Trump stays adamant over his demand for Greenland.
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