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European Parliament Blocks US-EU Trade Deal Amid Trump’s Greenland and Tariff Threats

Wale by Wale
January 21, 2026
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European Parliament Blocks US-EU Trade Deal Amid Trump’s Greenland and Tariff Threats
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The European Parliament has blocked a vote on a US-EU trade deal as tensions escalate over President Donald Trump’s threats to seize Greenland and his new 10% import tax on countries opposing his plans.

“EU-US Deal on ice indefinitely! Our sovereignty & territorial integrity are at stake. Business as usual impossible,” Bernd Lange, chairman of the European Parliament’s international trade committee, said on social media.

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The preliminary agreement, called the Turnberry Deal, was negotiated in July when European Commission President Ursula von der Leyen visited Trump’s golf club in Turnberry, Scotland. The deal set out tariff and trade arrangements between the United States and the 27-nation EU.

In a statement, the European Parliament explained the vote was suspended due to “continued and escalating threats, including tariff threats, against Greenland and Denmark, and their European allies.” The bloc said work on the Turnberry legislative proposals would remain on hold until the US adopts a cooperative approach rather than confrontation.

Under the agreement, European goods would face a tariff cap of 15%, protecting sensitive sectors such as pharmaceuticals and semiconductors from Trump’s threat of triple-digit tariffs. The deal also included EU commitments to invest $600 billion in the US by 2028, purchase $750 billion in American energy, procure $40 billion in semiconductors, and increase military equipment acquisitions.

“This Framework Agreement will put our trade and investment relationship — one of the largest in the world — on a solid footing and will reinvigorate our economies’ reindustrialization,” the EU said in a joint statement.

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