US-EU Trade Pact On Hold Amid Trump’s Greenland Tariff Threat

Following US President Donald Trump’s warning to impose tariffs on Denmark and other European countries over the sale of Greenland, the European Union has called for a pause to the ratification process of the EU-US trade deal announced back in July 2025.

Vice-President of the European People’s Party, Siegfried Muresan, in a post on X, confirmed the pause in the ratification process, stating, “We were supposed to ratify the EU-US trade deal from last July very soon, reducing tariffs for imports from the US into the European Union to 0%. However, in light of recent developments, this ratification will have to wait a little longer in this new context.”

The deal announced in July 2025, between the US and the EU, comprising 27 member states, unveiled a bilateral framework agreement aimed at resolving various tariff and trade issues.

However, Trump’s recent post on Truth Social has cast doubt on the future of the agreement.

On Saturday, Trump threatened to impose tariffs on Denmark and other European countries unless they agree to sell Greenland.

In his post, Trump claimed the move is necessary for national security, citing China’s and Russia’s interest in the territory.

He offered to negotiate with the European nations but warned of escalating tariffs of 10 per cent from February 1, 2026, and 25 per cent from June 1, 2026 if a deal wasn’t reached, stating it was “time for Denmark to give back” after years of US support.

“Starting on February 1st, 2026, all of the above mentioned Countries (Denmark, Norway, Sweden, France, Germany, The United Kingdom, The Netherlands, and Finland), will be charged a 10% Tariff on any and all goods sent to the United States of America. On June 1st, 2026, the Tariff will be increased to 25%. This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland,” Trump posted.

Trump has been adamant about acquiring Greenland, a semi-autonomous territory of Denmark, citing national security concerns.

Washington claims Greenland’s strategic location and mineral resources are vital to its security, but the leadership in Denmark and Greenland have rejected the idea, emphasising their right to self-determination.

Muresan, in a follow-up post, added that Trump’s latest announcement undermines the “stability” which was the sole benefit expected from last year’s trade deal.

He further stated that this was the reason why delaying the ratification of the trade deal is warranted.

“STABILITY would have been the only gain from last year’s trade deal between the US and the European Union. Today’s announcement by President Trump to eventually impose new tariffs on several EU member states takes away that stability. This is why the postponement of the ratification of that trade deal is justified,” Muresan added.

Meanwhile, Germany, Sweden, France, Norway, the Netherlands, and Finland have sent small numbers of military personnel to Greenland, with Denmark increasing its own military presence amid Trump’s call for acquiring the Arctic island.

The situation has sparked concerns about the potential impact on NATO, with some European leaders warning that a US attempt to seize Greenland could lead to the alliance’s demise. (ANI)