Monday, January 19, 2026- European Union lawmakers are preparing to pause or potentially block approval of a major trade agreement with the United States after President Donald Trump threatened new tariffs targeting European countries over geopolitical disputes relating to Greenland.
Key EU political leaders said they can no longer support ratifying the deal unless the threat is withdrawn, arguing that such coercive trade measures undermine trust and violate the spirit of transatlantic cooperation. The trade pact, intended to lower tariffs and expand market access, now faces significant delays.
The tariff threats have ignited broad concern among EU capitals, where leaders warn that additional U.S. levies could disrupt economic ties and trigger retaliatory measures.
Brussels officials are considering activating the bloc’s Anti‑Coercion Instrument a powerful trade tool designed to respond to coercive economic actions which could include tariffs or restrictions on U.S. goods and investments. At the same time, discussions are underway about imposing tariffs on tens of billions of euros’ worth of U.S. exports if Trump pushes forward with his plan.
The standoff has sparked urgent diplomatic activity as both sides seek to avert a broader trade conflict. European capitals are united in their criticism of the U.S. approach, warning that escalating tariffs risk a “dangerous downward spiral” in transatlantic relations. With the trade deal’s future uncertain, global markets and exporters on both sides are watching closely as negotiations, countermeasures, and political posturing continue.
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