EU delays vote on US trade deal, is prepared to respond to tariff threat

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The European Parliament has delayed its vote on its trade deal with the U.S. in response to President Donald Trump's threat to impose additional tariffs [https://seekingalpha.com/news/4540073-trump-impose-tariffs-europe-greenland-issue]on any countries that oppose the U.S. taking over Greenland, according to media reports.

The EU's trade committee was scheduled to set its position in votes on Jan. 26-27, but that has been delayed. The committee chair, Bernd Lange, said [https://www.reuters.com/business/european-parliament-suspends-work-eu-us-trade-deal-after-trumps-repeated-2026-01-21/]that the threat of new tariffs has upended a trade deal that was reached in Scotland in July.

In a speech to the parliament on Wednesday, EU President Ursula von der Leyen objected to the potential new tariffs, citing the bloc's cooperation with the U.S. on ensuring security in the Arctic region.

"We are aligned. We are working together. We share the same strategic assessment on Arctic Security," she said. "And this is why the threat of additional tariffs for security reasons is simply wrong."

And even with the EU's history of cooperation with the U.S., the EU can't stand by while the U.S. acts on its own.

"We are at a crossroads," von der Leyen said. "Europe prefers dialogue and solutions – but we are fully prepared to act, if necessary, with unity, urgency, and determination."

Later on Wednesday, Trump insisted that the U.S. is the only nation [https://seekingalpha.com/news/4540907-the-us-is-the-only-country-that-can-protect-greenland-trump-says-at-davos]that can properly protect Greenland, ensuring global security. He, however, said he would not use force to gain control of the semi-autonomous island that's part of Denmark.

The EU will work with the U.S. and all partners on wider Arctic security, she said. But the allied nations must have their own approach. That's why it's working on a package to support Arctic security, which includes a "a massive European investment surge" in Greenland.

Von der Leyen pointed to progress in reaching trade agreements in multiple regions, including a deal with the Mercosur alliance in South America and an agreement with India to be signed next week. "And negotiations are advancing with many others who want to do business with us," she said.

As those trade deals open opportunities for the EU, they'll create jobs in Europe, reinforcing resilience and security of supply. "Because the more trading partners we have worldwide, the more independent we are," von der Leyen said. [https://ec.europa.eu/commission/presscorner/detail/en/speech_26_178]

EU officials have prepared [https://seekingalpha.com/news/4540253-denmark-sends-additional-troops-to-greenland]retaliation measures if the U.S. imposes additional tariffs, including what's known as the "bazooka," which would limit U.S. tech companies' access to the EU market.

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