EU Suspends US Trade Deal Amid Trump’s Greenland Threats, Says Sovereignty At Stake: ‘Business As Usual Impossible’

• Lange stated that work on the deal will remain suspended until the U.S. reengages on a “path of cooperation rather than confrontation.”
• He had earlier proposed suspending the trade deal, criticizing the United States for imposing new tariffs on several European countries.
• Lange’s comments come after President Trump announced a 10% tariff on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland from February 1.

The European Union’s legislative body announced on Wednesday that the trade deal with the United States has been suspended amid U.S. President Donald Trump’s threats over Greenland.

Bernd Lange, chair of the European Parliament’s International Trade Committee, stated that the U.S. is undermining the stability and predictability of its trade relations with the EU.

“Given the continued and escalating threats, including tariff threats, against Greenland and Denmark, and their European allies, we have been left with no alternative but to suspend work on the two Turnberry legislative proposals until the US decides to re-engage on a path of cooperation rather than confrontation,” Lange said.

In a post on X, Lange clarified that the EU-U.S. trade deal is on hold until further notice. “Our sovereignty and territorial integrity are at stake. Business as usual impossible,” he added.

Lange Calls Out US Confrontation

Lange proposed suspending the EU-U.S. trade deal last week, criticizing the United States for imposing new tariffs on several European countries.

“Diplomacy should be the path for solving disputes between allies. The EU has been and continues to be a partner seeking dialogue rather than confrontation. The same, unfortunately, cannot be said for the U.S.,” the German MEP said in a post on X.

In a post on Truth Social last week, President Trump said that the U.S. will levy a 10% tariff on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland from February 1, which will be ramped up to 25% from June 1.

He added that these tariffs would be in place until a deal is reached for the complete transfer of Greenland to the U.S.

Trump Ramps Up Pressure

In a speech at the World Economic Forum in Davos, Switzerland, President Trump sought “immediate negotiations” for the acquisition of Greenland by the United States.

“It’s the United States alone that can protect this giant mass of land, this giant piece of ice, develop it and improve it and make it so that it’s good for Europe and safe for Europe and good for us,” he said.

However, he denied that the U.S. would use force to acquire the world’s largest island, but noted that if the United States were to use force, it would be “frankly unstoppable.”

U.S. equities gained in Wednesday morning’s trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up by 0.48%, the Invesco QQQ Trust ETF (QQQ) rose 0.47%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.67%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘extremely bearish’ territory.

Also See: Trump At Davos: US President Rules Out Using Force To Take Over Greenland, Seeks 'Immediate Negotiations' To Discuss Its Acquisition

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