Europe Suspends EU-US Trade Agreement Amid Tensions

The European Parliament has decided to freeze the ratification process of the EU–US trade agreement following recent threats by Donald Trump regarding Greenland, leading political groups confirmed on Tuesday.

Political groups reached a majority consensus to suspend the trade agreement concluded last year between the European Union and the United States, said Iratxe García Pérez, president of the Socialists and Democrats group, speaking to reporters.

The European People’s Party (EPP), the largest political group in the European Parliament, confirmed the decision to halt discussions on the agreement reached last summer. The deal provides for 15% tariffs on European exports to the United States while eliminating tariffs on US exports to the EU.

EPP leader Manfred Weber described restricting tariff-free access for US companies to the European market as a “very powerful tool.” “It is an extremely strong lever. I do not believe businesses would agree to abandon the European market,” said Valérie Hayer, president of the centrist Renew group.

Parts of the far right opposed the decision. “We believe this is a mistake,” said Nicola Procaccini, co-chair of the Eurosceptic European Conservatives and Reformists group.

However, the Patriots group, chaired by French MEP Jordan Bardella, supported the suspension of the agreement.

By freezing discussions within the European Parliament, lawmakers effectively block the ratification and, consequently, the implementation of the EU–US trade deal.

Political groups remain divided over how to respond to Trump’s threats beyond the trade freeze. The EPP has called for de-escalation and has rejected activating the EU’s Anti-Coercion Instrument (ACI), which could restrict US companies’ access to EU public procurement. Procaccini also opposed using the mechanism.

Other political groups in the European Parliament support invoking the ACI, often described as Europe’s “economic bazooka,” as a potential response.