EU Suspends Approval of US Trade Deal Over Greenland Dispute

STRASBOURG, FRANCE - The European Parliament suspended approval of a key US trade deal on Wednesday, citing renewed trade tensions sparked by President Donald Trump's interest in acquiring Greenland. The suspension, announced in Strasbourg, France, coincided with President Trump's address at the World Economic Forum in Davos, according to BBC World reports.

The trade deal, initially agreed upon in July, has been halted due to the escalating tensions. Multiple news sources confirm the suspension raises the possibility of retaliatory tariffs from the EU on American goods. The EU's action is contingent on the US demonstrating a commitment to cooperation rather than confrontation, according to BBC World.

The move followed Trump's stated interest in acquiring Greenland, which "rattled financial markets, reviving talk of a trade war and the possibility of retaliation against the US," according to BBC World. Hours later, Trump stated on social media that he had reached a "framework" deal on Greenland's future and would not carry out threats to put new tariffs in place.

The suspension effectively freezes progress on the agreement until the US commits to cooperation. The potential retaliatory tariffs from the EU could affect billions of dollars worth of American goods, according to BBC World reports.