Business & Economics

EU Freezes US Trade Deal and Mulls Anti-Coercion ‘Bazooka’ After Trump’s Greenland Tariff Ultimatum

On 21 Jan 2026, the European Parliament halted ratification of the July 2025 Turnberry trade pact and signalled possible use of the EU’s 2023 anti-coercion instrument after President Trump threatened 10–25 % tariffs unless Denmark cedes Greenland.

By Underlines Team

Focusing Facts

  1. Bernd Lange, chair of Parliament’s trade committee, announced on 21 Jan 2026 that work on the EU-US deal is “on hold until further notice.”
  2. Trump’s ultimatum targets Denmark, Finland, France, Germany, Netherlands, Sweden, the UK and Norway with 10 % tariffs from 1 Feb, escalating to 25 % by June if no Greenland agreement is reached.
  3. Activating the anti-coercion tool requires a qualified-majority vote (55 % of states representing 65 % of EU population) and can unleash retaliatory measures within six months.

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