Thursday, January 22, 2026
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EU Suspends US Trade Deal Approval

The European Parliament has put the approval of a major US trade agreement on hold following renewed tensions over President Donald Trump’s remarks about Greenland. The decision was announced on Wednesday in Strasbourg, while Trump was speaking at the World Economic Forum in Davos. European lawmakers said the pause was a direct response to the US president’s repeated threats of tariffs linked to his push to take control of Greenland.

Although Trump has ruled out using military force, his statements have unsettled European leaders and financial markets, reviving concerns about a possible trade conflict between the US and Europe. Relations had improved in recent months after both sides reached a trade deal in July at Trump’s Turnberry golf resort in Scotland.

Under that agreement, US tariffs on most European goods were reduced to 15 percent from the previously threatened 30 percent. In return, Europe committed to increased investment in the US and policy changes aimed at supporting American exports. However, the deal still required formal approval from the European Parliament.

That process has now been suspended. Bernd Lange, chair of the European Parliament’s International Trade Committee, said lawmakers had “no alternative” but to halt work on the legislation linked to the Turnberry agreement. He added that discussions would remain frozen until the US shifts back towards cooperation rather than confrontation.

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Thursday, January 22, 2026

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