EU Suspends US Tariff Deal Approval 2026 as Greenland Tensions Flare
The European Parliament is set to halt the US trade deal approval following Trump's Greenland threats. EU Suspends US Tariff Deal Approval 2026 as market volatility surges.
The fragile truce between the world's largest trade partners is unraveling. The European Parliament plans to suspend approval of the landmark US tariffs deal agreed just last July, signaling a return to open trade hostilities.
The Greenland Trigger: EU Suspends US Tariff Deal Approval 2026
The move, set to be announced in Strasbourg on Wednesday, marks a sharp escalation in tensions. According to reports from Bloomberg, the pivot comes after Donald Trump intensified his pursuit of Greenland, threatening new tariffs over the weekend. In response, Manfred Weber, an influential MEP, declared that "approval is not possible at this stage."
Market Fallout and Global Repercussions
Financial markets didn't take the news lightly. Major US indices fell by more than 1% on Tuesday morning, while the Euro climbed 0.8% against the dollar to $1.1742. The standoff threatens a trade relationship worth over €1.6tn ($1.9tn) in annual goods and services.
When we only negotiate bilaterally with a hegemon, we negotiate from weakness. We accept what is offered. This is not sovereignty.
US Treasury Secretary Scott Bessent, speaking at Davos, urged European leaders to "take a deep breath" and avoid retaliation. However, the EU's €93bn package of counter-tariffs is set to automatically trigger on February 7 unless a last-minute breakthrough occurs.
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