EU lawmakers stall US trade deal in protest over Greenland

January 21, 2026 10:29 AM EST

FILE PHOTO: General view of a plenary room of the European Parliament ahead of European Union High Representative for Foreign Affairs and Security Policy and European Commission Vice-President Kaja Kallas' address on territorial integrity and sovereignty

(Refiles to fix faulty ⁠story link)

By ⁠Philip Blenkinsop

BRUSSELS, ‍Jan 21 (Reuters) - The European Parliament has decided to suspend its work on the European Union's trade deal with ‍the United States in protest at U.S. President Donald ​Trump's demands to acquire Greenland and threats of tariffs on European allies who oppose ​his plan.

The EU assembly has been debating legislative proposals to remove many EU import duties on U.S. goods, a key part of the agreement struck ​in Turnberry, Scotland, at the end of July, as well as to continue zero duties for U.S. lobsters, initially agreed with ​Trump in 2020. The proposals require approval by the parliament and EU governments.

Many lawmakers have ‌complained that the trade deal is lopsided, with the EU required to cut most import duties while the ​U.S. sticks to a broad rate ⁠of 15%. However, they had previously appeared willing to accept it, albeit with conditions, such as an ‌18-month sunset clause and measures to respond to possible surges of U.S. imports.

The trade committee of the European Parliament was due to set its position ‌in votes on January 26-27. However this has now been postponed.

The chair of ‌the committee Bernd Lange told a news conference on Wednesday that the new tariff threats had broken the Turnberry deal, saying it would now be ‍put on hold until further notice.

However, freezing the deal risks angering Trump, which could lead to higher ⁠U.S. tariffs. The Trump administration has also ruled out any concessions, such as cutting tariffs on spirits or steel, until the deal is in place.

(Reporting by Philip Blenkinsop, writing by Louise Rasmussen, editing by Benoit Van Overstraeten and Toby Chopra)



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