European Parliament halts work on US trade deal in response to Trump Greenland push

• Bernd Lange, chair of Parliament's International Trade Committee, cited 'continued and escalating threats, including tariff threats' against Greenland, Denmark, and European allies as reason for suspending the Turnberry legislative proposals
• Trump stated at the World Economic Forum in Davos that the U.S. is the only nation positioned to control and secure Greenland, framing it as a strategic security necessity for both the U.S. and Europe
• Greenland, the world's largest island located in the Arctic, governs its own domestic affairs while remaining within the Kingdom of Denmark

European Parliament Suspends US Trade Deal Over Greenland Tensions

The European Parliament has halted negotiations on proposed U.S.-EU trade measures in response to escalating threats from the Trump administration regarding Greenland and Denmark. Bernd Lange, chair of Parliament's International Trade Committee, announced Wednesday that work on two Turnberry legislative proposals would be suspended until the U.S. shifts from "confrontation" to "cooperation."

Key Details:

The suspended trade deal would have eliminated tariffs on all U.S. industrial goods and established a tariff framework for most American agricultural and food products entering the EU. No specific dollar amounts or implementation dates were mentioned.

Trump's Greenland Push:

Speaking at the World Economic Forum in Davos, Switzerland on January 21, 2026, President Trump defended his pursuit of Greenland, claiming U.S. control is necessary for security. He stated he doesn't want to use force but emphasized that only the U.S. can "control and secure" the territory. Trump referenced the U.S. trustee role over Greenland after World War II, which was returned to Denmark.

Market Implications:

This development represents a significant escalation in transatlantic tensions and poses risks to U.S.-EU trade relations. The suspension threatens potential tariff relief for American industrial exporters and agricultural producers seeking European market access. The standoff adds uncertainty to global trade policy at a time when businesses seek stability.

Strategic Context:

Greenland, the world's largest island, governs its domestic affairs while remaining part of the Kingdom of Denmark. Trump framed U.S. control as a "strategic necessity" benefiting both America and Europe, though EU lawmakers clearly reject this characterization given their response.