A trade agreement between the US and the European Union has been put on hold after the European Parliament decided to delay a ratification vote. This decision was made in response to President Donald Trump's increasing threats regarding Greenland.

On Wednesday, the Parliament’s trade committee indefinitely postponed the vote, raising concerns about whether the agreement will ever be finalized.

This deal has become entangled in the growing tensions between the EU and the US over Greenland, putting the transatlantic partnership at risk. Trump has threatened to impose tariffs on several European nations until he is allowed to purchase Greenland, which is a territory of Denmark.

Bernd Lange, the chair of the Parliament’s trade committee, stated, “By threatening the territorial integrity and sovereignty of an EU member state and using tariffs as a coercive tool, the US is destabilizing EU-US trade relations.” He added, “We have no choice but to halt work on the trade deal until the US chooses to engage in a cooperative manner instead of a confrontational one.”

Trump's recent tariff threats prompted EU lawmakers to reconsider their expected vote to ratify the US trade deal, which was initially agreed upon with Washington last July. This agreement included a 15% tariff on most EU goods in exchange for eliminating all tariffs on US industrial goods and certain agricultural products. While the pact has begun to be implemented, it still requires Parliament's approval to be fully finalized.

At that time, EU concessions were viewed as a way to prevent a full-blown trade war with Trump and to keep US security assurances for Europe amid Russia's ongoing war in Ukraine.

However, Trump's ultimatum regarding Greenland has intensified longstanding European criticisms that the agreement was too favorable to the US. Some supporters of the deal are now suggesting that it should not be approved for the time being. Trump declared that a 10% tariff will be imposed on February 1 for eight European countries, increasing to 25% in June unless he can negotiate for the “purchase of Greenland.”

The decision to delay was anticipated after leading lawmakers from the Parliament's largest political groups suggested a postponement over the weekend following Trump's tariff announcement.

Manfred Weber, leader of Parliament’s largest group, the center-right European People’s Party, stated on Wednesday that “for us in the EPP, and I believe for all parliamentarians, it’s clear that there will be no ratification and no zero percent tariff access to the EU for US products until we clarify the issue of reliability.”

EU leaders are set to meet in Brussels on Thursday to discuss their response to Trump's actions. Considered options include imposing counter tariffs on €93 billion ($109 billion) worth of US goods and possibly using the anti-coercion instrument, which would allow the EU to limit investments and impose additional fees and tariffs.

“Europe prefers dialogue and solutions — but we are fully prepared to take action if necessary, with unity, urgency, and determination,” said European Commission President Ursula von der Leyen during her address to EU lawmakers on Wednesday.

Even prior to Trump's Greenland threats, the EU-US trade deal faced challenges in the Parliament. A group of EU lawmakers opposed it from the outset, and criticism intensified after the US expanded a 50% metals tariff to include hundreds of additional products. The US also sought modifications to EU tech regulations in exchange for scaling back the extended tariffs, further angering opponents.