European lawmakers have formally halted the US trade agreement ratification process, challenging President Trump’s attempt to link tariff policy with his territorial ambitions for Greenland. The suspension represents Brussels’ most significant material action against what European leaders have described as economic blackmail.
Trade committee chairman Bernd Lange articulated clear conditions for resuming negotiations, stating that Greenland-related threats must completely cease before any possibility of compromise exists on the trade deal. The frozen agreement had been set to provide American industrial exporters with zero-tariff access to European markets.
The European Union has maintained its commitment to purchasing $750 billion worth of American energy, with officials confirming this arrangement operates independently from the suspended trade agreement. This strategic separation allows Brussels to preserve essential energy cooperation while defending political autonomy.
Diplomatic tensions escalated visibly when European Commission President Ursula von der Leyen changed her schedule after addressing parliament. She cancelled a potential Davos meeting with Trump, returning instead to Brussels to prepare for an emergency summit convening Thursday at 7pm.
The crisis summit agenda includes evaluation of powerful response mechanisms available to the EU. Leaders will consider implementing €93 billion in counter-tariffs on American exports and potentially activating an unused anti-coercion instrument that functions as a nuclear deterrent in trade disputes. This mechanism could restrict US companies from accessing European markets, affecting major corporations across sectors including technology, aviation, and agriculture. However, European officials recognize that such measures might impose costs on European consumers through higher prices or reduced access to popular American services.
Thursday Summit to Decide Fate of Transatlantic Trade Relations
