At a Glance
- The European Parliament suspended all work on the July 2024 U.S.-E.U. trade agreement.
- The move follows President Trump’s threat to impose tariffs if seven E.U. nations and the U.K. refuse to cede control of Greenland.
- Committee chair Bernd Lange said sovereignty is “at stake” and “business as usual” is impossible.
- Why it matters: American farmers and factories lose promised lower tariffs into the 27-nation bloc, and the 15% cap on most E.U. exports to the U.S. is now dead.
The European Union slammed the brakes on its landmark trade deal with President Trump, freezing every step needed to turn the July agreement into law after Trump demanded sovereignty over Greenland.
Deal Frozen Over Greenland Threat
Bernd Lange, chairman of the European Parliament’s international trade committee, said lawmakers “have been left with no alternative but to suspend work” on the pact. The decision wipes out months of negotiations that capped U.S. tariffs on most E.U. goods at 15% and eliminated them entirely on generic pharmaceuticals.
Lange tied the freeze directly to Trump’s weekend warning that he would hit Denmark, France, Germany, Italy, the Netherlands, Spain, Sweden and the United Kingdom with tariffs unless they hand control of Greenland to Washington. Greenland is an autonomous Danish territory.
“Until the U.S. decides to re-engage on a path of cooperation rather than confrontation, no steps to move the deal forward will be taken,” Lange said in a statement released Wednesday.
He echoed the message on X: “Our sovereignty and territorial integrity are at stake. Business as usual impossible.”
What the Deal Promised
The agreement, struck during European Commission President Ursula von der Leyen’s visit to Trump’s Turnberry golf resort last summer, was billed as a rare win for trans-Atlantic trade stability.
Key provisions included:
- A 15% ceiling on U.S. tariffs for the bulk of E.U. exports
- Zero tariffs on generic medicines shipped from Europe
- Lower E.U. duties on selected American farm and factory products
At the time, the Commission said the pact “restores stability and predictability” for companies on both sides of the Atlantic.
Von der Leyen: “A Deal Is a Deal”
Speaking Tuesday at the World Economic Forum, von der Leyen warned that Trump’s tariff threat undermined the spirit of the agreement.
“In politics as in business, a deal is a deal,” she said. “And when friends shake hands, it must mean something.”
Her comments previewed the formal suspension announced the next day by Parliament’s trade committee.
Immediate Impact
The freeze leaves American exporters without the improved market access they expected. European firms, meanwhile, face renewed uncertainty over whether Trump will follow through on tariffs that could climb well above the now-scrapped 15% cap.
No new negotiations are scheduled, and Lange gave no timeline for restarting the approval process.
Key Takeaways
- The E.U.-U.S. trade deal is on ice, not killed outright, but every legislative step has stopped.
- Trump’s Greenland ultimatum triggered the suspension; lawmakers tied the two issues together explicitly.
- American agricultural and industrial exporters lose a promised tariff cut, while E.U. pharma firms forfeit duty-free access.
- Without parliamentary approval, the July agreement has no legal force, leaving trans-Atlantic trade rules in limbo.
