The European Parliament has taken definitive action by suspending the US trade agreement ratification, responding to President Trump’s threat of 10% tariffs conditional on European support for his Greenland acquisition. This parliamentary decision marks the strongest material response Brussels has delivered against what European leaders have termed blackmail tactics.
Trade committee chairman Bernd Lange established unequivocal terms for future negotiations, insisting that threats involving Greenland must end before any possibility of compromise exists. The suspended deal would have provided American exporters with zero-percent tariffs on many industrial products entering European markets.
Despite the trade deal freeze, the EU’s $750 billion energy purchase commitment remains fully intact. Lange confirmed this energy arrangement operates separately from the tariff negotiations, demonstrating Brussels’ selective approach to the crisis.
The diplomatic chill became visible when Ursula von der Leyen, president of the European Commission, modified her post-parliamentary schedule. She cancelled a potential Davos meeting with Trump, returning directly to Brussels to coordinate emergency summit preparations for Thursday evening.
European trade policy faced additional setbacks when parliament voted by a narrow margin to refer the Mercosur trade deal with Latin American countries to the European Court of Justice. German Chancellor Friedrich Merz joined Lange and the European Commission in condemning the decision, which also drew criticism from German car manufacturers. While the Commission retains authority to provisionally implement Mercosur as it did with Brexit, Lange warned such action would trigger “huge institutional conflict.” The emergency summit will focus on US relations, examining €93 billion in potential counter-tariffs and unprecedented anti-coercion mechanisms.
Friedrich Merz Joins Criticism of Parliament’s Trade Deal Referral
