The European Parliament has temporarily suspended ratification of a trade agreement with the US after President Trump threatened to impose tariffs related to Greenland.

The European Parliament decided on January 20 to temporarily halt the ratification process of the transatlantic trade agreement between the European Union (EU) and the United States, after President Donald Trump threatened to impose tariffs related to the Greenland issue. This approach demonstrates a tougher stance by the EU in protecting the bloc's economic and trade interests.

Key political groups within the European Parliament have reached a consensus to temporarily postpone the ratification of the trade agreement signed by the European Union and the United States last July. This move means the agreement cannot yet take effect and be implemented in practice. The direct cause of this move stems from statements made by the White House regarding Greenland.

Earlier, President Donald Trump warned he might impose additional import tariffs, ranging from 10% to 25%, on European countries that opposed the US plan for Greenland, a territory belonging to Denmark. This quickly became a new point of conflict, disrupting trade cooperation that had only resumed less than a year ago.

The European Union is also considering retaliatory measures, including the possibility of preparing a package of tariffs targeting certain US goods.

The agreement of July 27, 2025, is considered a cornerstone of the European Union's economic strategy to regulate and ensure the flow of trade toward the bloc's largest export market.

In 2024, merchandise trade between the EU and the US reached 867 billion euros, with EU exports to the US valued at 532 billion euros.

Source: VTV

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