EU Suspends Approval of US Trade Deal Over Greenland Dispute

The European Parliament suspended approval of a key US trade deal on Wednesday, citing renewed trade tensions stemming from President Donald Trump's interest in acquiring Greenland. The move, announced in Strasbourg, France, coincided with Trump's address at the World Economic Forum in Davos.

The suspension effectively halts progress on the agreement, which was initially agreed upon in July, until the US commits to cooperation rather than confrontation, according to BBC World. The European Parliament's action raises the possibility of retaliatory tariffs from the EU on billions of dollars worth of American goods.

The decision to suspend the trade deal approval was triggered by Trump's bid to acquire Greenland, which reportedly rattled financial markets and revived talk of a trade war. According to BBC World, the US president's interest in Greenland sparked renewed trade tensions between the US and Europe.

Hours after the suspension was announced, Trump stated on social media that he had reached a "framework" deal on Greenland's future and would not carry out threats to impose new tariffs. However, the European Parliament's decision remains in effect, signaling a firm stance against what they perceive as confrontational trade tactics.