Highly Damaging Trade War Risks Mount Despite Diplomatic Efforts

The European Parliament has officially suspended the US trade deal ratification, directly responding to President Trump’s threat of 10% tariffs unless Europe supports his Greenland acquisition plans. This parliamentary decision represents the most substantial material pushback Brussels has demonstrated against what several European leaders characterized as blackmail.
Trade committee head Bernd Lange made clear that compromise remains impossible while threats concerning Greenland persist. The suspended agreement had promised American exporters unprecedented access to European markets with zero tariffs on numerous industrial goods.
Despite the trade deal suspension, the EU’s commitment to purchase $750 billion in American energy remains fully operational. Lange confirmed this energy arrangement exists independently from the tariff negotiations, demonstrating Brussels’ selective approach to the crisis.
The deteriorating diplomatic relationship became apparent when Ursula von der Leyen, president of the European Commission, revised her travel schedule following her parliamentary address. She cancelled a Davos visit where Trump was attending, choosing instead to return directly to Brussels for emergency summit preparations.
European officials emphasized that they continue working toward diplomatic solutions to avert what would be a highly damaging trade war with the United States. Lange acknowledged that “a lot could happen” before February 2nd, noting daily surprises from the White House. The Thursday summit will examine €93 billion in counter-tariffs and anti-coercion mechanisms that could restrict US businesses from European markets. Meanwhile, parliament’s narrow decision to refer the Mercosur deal with Latin America to the European Court dealt a serious blow to the EU’s trade diversification efforts.