Transatlantic Trade Deal On Ice Amid Greenland Dispute

The European Parliament has suspended its work on the EU-U.S. trade deal due to Donald Trump's interest in Greenland and tariff threats. The agreement aimed to eliminate EU tariffs on U.S. goods but faced criticism for being unbalanced. Talks have now been delayed indefinitely.

The European Parliament has put on hold its efforts to finalize a trade deal with the United States, citing concerns over President Donald Trump's recent actions. The suspension comes in response to Trump's expressed desire to acquire Greenland and his threats of imposing tariffs on European nations opposed to his plan.

The EU had been negotiating to remove many import duties on U.S. goods, a strategy agreed upon during a July meeting in Turnberry, Scotland. Additionally, both sides agreed to maintain zero tariffs on U.S. lobsters, a deal initially reached with Trump in 2020. The arrangement, however, has been criticized for favoring the U.S., as it requires the EU to slash most of its duties, while the U.S. maintains a 15% tariff.

Bernd Lange, chair of the European Parliament's trade committee, announced the suspension of the deal, which was supposed to be finalized in January. The decision to halt the process risks triggering higher tariffs from the U.S., as the Trump administration has refused to make any concessions without the deal in place.

(With inputs from agencies.)