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, agreed upon in July, halts progress on the agreement and raises the possibility of retaliatory tariffs from the EU on American goods, contingent on the US demonstrating a commitment to cooperation.

The suspension was announced in Strasbourg, France, as President Trump addressed the World Economic Forum in Davos, according to BBC World reports. The decision followed Trump's expressed interest in acquiring Greenland, which had rattled financial markets and revived talk of a potential trade war between the US and Europe.

Multiple news sources confirmed the European Parliament's action. The EU's move effectively freezes the trade deal's approval process until the US demonstrates a commitment to cooperation rather than confrontation.

The possibility of retaliatory tariffs from the EU on American goods now looms, pending a shift in US trade policy. The value of American goods potentially subject to these tariffs could reach billions of dollars.

Hours after the EU's announcement, President 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 EU's suspension remains in place, pending further developments.