EU Parliament halts US trade deal work after Trump’s Greenland remarks in Davos

U.S. President Donald Trump speaks during the 56th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 21, 2026. (REUTERS)

• EU Parliament halts EU-US trade deal talks after Trump's Greenland comments.
• Votes on EU import duty cuts and lobster access postponed amid tariff threats
• Deal remains on hold, raising risk of US retaliation and higher tariffs

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The European Parliament on Wednesday suspended work on a trade deal between the European Union and the United States after US President Donald Trump renewed demands for control over Greenland and threatened tariffs against European allies opposing the move.

An EU lawmaker said the decision followed Trump’s latest remarks at the World Economic Forum in Davos, which have triggered strong pushback across the 27-nation bloc. Greenland is a semi-autonomous territory of Denmark.

The parliament has been examining legislative proposals to eliminate several EU import duties on US goods, a central part of the agreement reached in Turnberry, Scotland, in late July. The package also includes extending zero-duty access for US lobster imports, an arrangement first agreed with Trump in 2020. Both measures require approval from the European Parliament and EU member states.

Several lawmakers have criticised the deal as uneven, arguing that it would require the EU to slash most of its import duties while the United States maintains a broad tariff rate of 15%. Despite these concerns, lawmakers had earlier signalled a willingness to move forward with safeguards, including an 18-month sunset clause and measures to address any surge in US imports.

The European Parliament’s trade committee was due to finalise its position through votes scheduled for January 26–27. Those votes have now been postponed.

Bernd Lange, chair of the parliament’s trade committee, told a news conference on Wednesday that Trump’s latest tariff threats had effectively broken the Turnberry agreement, adding that the deal would remain on hold until further notice.

Freezing the agreement raises the risk of retaliation from Washington, potentially in the form of higher US tariffs. The Trump administration has also ruled out concessions, including cuts to tariffs on spirits or steel, until the trade deal is revived.

*With Reuters input