The European Parliament has frozen the ratification of a trade agreement with the United States after fresh tariff threats from Donald Trump, escalating tensions between Washington and Brussels.
The suspended agreement was a limited EU–U.S. deal on import and export tariffs. It aimed to lower or pause duties on selected industrial goods traded between the two sides, easing pressure on companies and preventing a broader trade war. The decision was confirmed on Tuesday by leading political groups in the European Parliament, as Donald Trump stepped up pressure on European leaders meeting at the World Economic Forum in Davos. Speaking there, French President Emmanuel Macron warned against what he described as the return of ‘imperial ambitions’ and accused the United States of seeking to weaken and subordinate Europe.
Trump earlier threatened to impose 200 per cent tariffs on French wines and champagnes after Macron refused to join his proposed ‘Board of Peace’.
The trade agreement, reached in late July by Donald Trump and European Commission President Ursula von der Leyen, has now been suspended as relations between Washington and Europe continue to deteriorate.
That broader standoff has also spilled into security and Arctic policy. Trump said he held a ‘very good’ phone call with NATO Secretary General Mark Rutte, telling him that Greenland is ‘imperative for national and world security’. In a post on Truth Social, Trump said there could be ‘no going back’, signalling that the dispute now extends beyond trade into strategic and defence issues.
A day earlier, Trump said the United States would discuss acquiring Greenland at this week’s World Economic Forum in Davos, arguing that Denmark cannot adequately protect the territory.
“We have to have it. They can’t protect it, Denmark,” Trump told reporters in Florida, while adding that Danish leaders were “wonderful people”.
Alongside the push over Greenland, Trump escalated pressure on European allies by threatening new trade measures. He said he would impose a 200% tariff on French wines and champagnes after French President Emmanuel Macron declined to join Trump’s proposed 'Board of Peace' initiative.
France intends to reject the invitation at this stage, a source close to Macron said. Trump has also said he invited Russian President Vladimir Putin to join the board, prompting warnings from diplomats that the initiative could undermine the United Nations.
Trump has said he will “100%” follow through on threats to impose tariffs on countries opposing his plan to take control of Greenland, as new details have emerged about diplomatic exchanges with European leaders.
Messages released under Norway’s freedom of information laws showed Trump telling Norwegian Prime Minister Jonas Gahr Støre that not being awarded the Nobel Peace Prize meant he no longer felt “an obligation to think purely of peace”. In the exchange, Trump argued that U.S. control of Greenland was essential for both American and global security.
Støre had written on behalf of himself and Finnish President Alexander Stubb, urging de-escalation over Greenland, Gaza and Ukraine and proposing direct talks following Trump’s announcement of potential tariffs. Trump rejected that approach, questioned Denmark’s claim to Greenland and said the territory could not be adequately protected from Russia or China without U.S. control.
Speaking separately to NBC News, Trump declined to comment on whether the U.S. would use force to take control of Greenland but reiterated that he would impose tariffs if a deal was not reached. He also suggested European leaders should focus on Russia and Ukraine rather than Greenland.
Greenland’s prime minister, Jens-Frederik Nielsen, said the territory would not be pressured, stressing that Greenland has the right to determine its own future. Denmark has also insisted that the island is not for sale and has emphasised that Greenland is already covered by NATO’s collective defence arrangements.
The dispute has triggered urgent diplomatic discussions across Europe. UK Prime Minister Keir Starmer described Trump’s tariff threats as “completely wrong”, while warning that a trade war would benefit no one. European finance ministers have said the EU is prepared to respond if the tariffs are implemented.
Markets across Europe fell amid concerns that the escalating row could derail a recent EU–U.S. trade agreement.
The White House has said Trump considers Greenland strategically vital due to growing Russian and Chinese activity in the Arctic.
“NATO has been telling Denmark, for 20 years, that you have to get the Russian threat away from Greenland. Unfortunately, Denmark has been unable to do anything about it,” Trump wrote in a post on the social media website he owns, Truth Social.
Russia and China
Kremlin spokesman Dmitry Peskov said on Monday it was hard to disagree with experts who believe Trump would go down in U.S. and world history if he succeeded in taking control of Greenland. He said he was not judging whether such a move would be good or bad, but was simply stating a fact.
Asked about Trump’s claims of a Russian threat, Peskov said there had been a lot of “disturbing information” circulating recently but that the Kremlin would not comment on alleged Russian designs on the island.
China said on Monday it had repeatedly stated its position on Greenland and urged the United States to stop citing a so-called “China threat” as a pretext for pursuing its own interests.
Foreign Ministry spokesperson Guo Jiakun said the international order, based on the purposes and principles of the United Nations Charter, must be upheld.
Tariffs on EU
Trump's tariffs he's threatening to impose on eight European nations would begin on 1 February and continue until the United States is allowed to buy Greenland. It's a move major EU states have described as blackmail.
UK Prime Minister Keir Starmer called for calm talks to avert a trade dispute with the United States, urging respect for alliances such as NATO.
“Tariffs should not be used against allies in this way,” Starmer said, warning that a trade war would hurt households and undermine partnerships.
He said the UK would use “the full strength of government” to try to stop the move and added that the dispute should be resolved through “calm discussion” rather than escalation.
EU leaders are set to discuss options at an emergency summit in Brussels on Thursday (22 January).
One option is a package of tariffs on €93 billion ($107.7 billion) of U.S. imports that could automatically take effect on 6 February after a six-month suspension.
Another option open to the bloc is the so-far unused Anti-Coercion Instrument, which could limit access to public tenders, investment, banking activity or restrict trade in services, including digital services where the United States runs a surplus with the EU.
A Brussels source said the proposed tariff package currently commands broader support than anti-coercion measures, where views remain mixed.
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