Europe to suspend approval of US tariffs deal

BBC News - WorldEN 4 min read 100% complete January 20, 2026 at 07:16 PM

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medium article 4 min

The European Parliament is expected to suspend approval of the US tariffs deal agreed upon in July due to escalating tensions between the US and Europe. The announcement is planned for Wednesday in Strasbourg, France. This decision follows Donald Trump's threats of new tariffs related to Greenland, which has rattled financial markets and raised concerns of a trade war. The original deal, which lowered US levies on European goods in exchange for European investment in the US, still requires parliamentary approval. The EU had previously paused retaliatory tariffs on US goods, but those levies are set to take effect on February 7 unless an extension is granted or the deal is approved. The situation has negatively impacted global markets, with stocks and the US dollar falling, and borrowing costs rising.

Key Entities & Roles

Key Player Opposition Context

United Kingdom 40% France 40% Germany 40% Emmanuel Macron 40% Manfred Weber 50% Greenland ×260% European Union ×370% European Parliament ×380% Europe ×485% Donald Trump ×390% United States ×890%

Keywords

us tariffs deal 90% trade tensions 80% european parliament 70% retaliation 60% trade war 60% eu levies 50% financial markets 50% greenland 40% borrowing costs 40% us exports 40%