The European Union (EU) has halted the process of formal approval of a trade agreement concluded with the United States (U.S.) President Donald Trump, following his threats to impose tariffs linked to Greenland.
Reaction of the European Parliament
Bernd Lange, Chairman of the European Parliament’s Committee on International Trade, said that because of threats against Greenland, Denmark, and their European allies, the EU had no other choice but to suspend work on the agreement.
“In view of the ongoing and escalating threats, including threats of tariffs, against Greenland and Denmark and their European allies, we had no other choice but to suspend work,” Lange said.
He added that no steps to advance the agreement would be taken “until the U.S. decides once again in favor of cooperation, rather than confrontation.”
“Our sovereignty and territorial integrity are under threat. Business as usual is impossible,” Lange stated in a post on the social network X.
Trump’s threats
The EU’s decision followed Trump’s statement on Saturday that seven EU countries, along with the United Kingdom (UK), would be hit by tariffs if they did not allow the U.S. control over Greenland.
Details of the halted agreement
The trade agreement was reached in July during a visit by European Commission President Ursula von der Leyen to Trump’s golf club in Turnberry, Scotland.
The core of the agreement was a cap on U.S. tariffs on most imports from the EU at 15 percent, which was one of the lowest rates granted to any trading partner last year. Some imports from the EU, such as generic medicines, were to be completely exempt from tariffs.
In return, the EU, the largest trading partner of the U.S., would lower tariffs on some products it imports from the U.S., which would help U.S. agricultural and industrial companies sell their products.
Change in tone
When the agreement was initially announced, the European Commission stated that it “restores stability.” However, that changed with Trump’s threat of tariffs.
“In politics as in business, a deal is a deal,” von der Leyen said on Tuesday at the World Economic Forum.
“And when friends shake hands, that has to mean something,” she added.
