EU parliament blocks US trade deal after Trump’s tariff threat

The Guardian - World NewsCenter-LeftEN 2 min read 100% complete by Lisa O’Carroll in BrusselsJanuary 21, 2026 at 06:37 PM

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The European Parliament has suspended the ratification process of its trade deal with the US in response to President Trump's threat to impose tariffs on EU exports unless the US can take over Greenland. This action is the EU's strongest response to what they view as blackmail. The EU is preparing for a potential trade war, considering countermeasures like tariffs on US exports and restricting US businesses' access to the EU market. Ursula von der Leyen returned to Brussels to prepare for an emergency summit to discuss options. In addition, the EU's efforts to diversify markets faced a setback as the Mercosur trade deal was referred to the European Court of Justice. The EU continues to seek diplomatic solutions to avoid a trade war, with Trump's tariff threats due to be realized on February 2.

Key Entities & Roles

Key Player Opposition Context

Germany 30% Friedrich Merz 35% China 40% Brussels ×250% Greenland ×260% Ursula von der Leyen 65% Bernd Lange ×370% European Commission ×275% European Parliament ×380% United States ×785% Donald Trump ×490% European Union ×1095%

Keywords

us trade deal 100% tariffs 90% eu 80% trade war 70% european parliament 60% trade sanctions 60% transatlantic relations 50% donald trump 50% mercosur trade deal 40%