European lawmakers have formally halted the US trade agreement ratification, challenging President Trump’s attempt to condition tariff policy on European support for his Greenland ambitions. The suspension marks Brussels’ strongest material response to what multiple European leaders have openly described as economic blackmail.
Bernd Lange, who heads the European Parliament’s trade committee, articulated clear conditions for resuming negotiations, stating that Greenland-related threats must completely cease before compromise becomes possible. The frozen agreement would have granted American industrial exporters zero-tariff access to European markets.
The European Union has preserved its $750 billion energy purchase commitment, which officials confirm operates separately from the suspended trade agreement. This strategic distinction allows Brussels to maintain energy security cooperation while defending against political coercion.
Diplomatic relations deteriorated visibly when European Commission President Ursula von der Leyen changed her schedule, returning to Brussels for emergency summit preparations rather than meeting Trump in Davos.
Brussels faces compounding strategic challenges as both its transatlantic trade relationship and its Latin American diversification efforts encounter serious obstacles. The suspension of the US deal combines with parliament’s narrow decision to refer the Mercosur agreement to the European Court of Justice, effectively stalling two major trade initiatives simultaneously. Lange condemned both developments, while the European Commission described the Mercosur referral as “regrettable.” German Chancellor Merz and German car manufacturers also criticized the Latin American trade setback. The Thursday summit will examine €93 billion in counter-tariffs and anti-coercion mechanisms.
