EU Pauses US Trade Deal Ratification After Trump’s Greenland Tariff Threat

Vice-President of the European People’s Party, Siegfried Muresan, confirmed the decision in a post on X, stating that the ratification process would be delayed in light of recent developments.

“We were supposed to ratify the EU–US trade deal from last July very soon, reducing tariffs for imports from the US into the European Union to 0%. However, in light of recent developments, this ratification will have to wait a little longer in this new context,” Muresan said.

The deal announced in July 2025 between the US and the EU’s 27 member states outlined a bilateral framework agreement aimed at resolving multiple tariff and trade-related disputes.

However, Trump’s recent post on Truth Social has cast uncertainty over the future of the agreement.

On Saturday, Trump threatened to impose tariffs on Denmark and other European countries unless they agree to sell Greenland to the United States.

In his post, Trump claimed the move was necessary for national security, citing China’s and Russia’s interest in the Arctic territory. While offering to negotiate, he warned of escalating tariffs—10 per cent from February 1, 2026, and 25 per cent from June 1, 2026—if no deal is reached, stating it was “time for Denmark to give back” after years of US support.

“Starting on February 1st, 2026, all of the above mentioned countries (Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland) will be charged a 10% tariff on any and all goods sent to the United States of America. On June 1st, 2026, the tariff will be increased to 25%. This tariff will be due and payable until such time as a deal is reached for the complete and total purchase of Greenland,” Trump posted.

Trump has remained adamant about acquiring Greenland, a semi-autonomous territory of Denmark, citing national security concerns. Washington argues that Greenland’s strategic location and mineral resources are vital to US security.

However, leaders in Denmark and Greenland have rejected the proposal, emphasising their right to self-determination.

In a follow-up post, Muresan said Trump’s latest announcement undermines the “stability” that was the primary benefit expected from last year’s trade deal, justifying the delay in ratification.

“Stability would have been the only gain from last year’s trade deal between the US and the European Union. Today’s announcement by President Trump to eventually impose new tariffs on several EU member states takes away that stability. This is why the postponement of the ratification of that trade deal is justified,” he added.

Meanwhile, Germany, Sweden, France, Norway, the Netherlands, and Finland have sent small numbers of military personnel to Greenland, with Denmark increasing its own military presence amid Trump’s calls to acquire the Arctic island.

The situation has raised concerns about the potential impact on NATO, with some European leaders warning that any US attempt to seize Greenland could threaten the future of the alliance.