Greenland Tensions Push EU to Pause US Trade Deal, Raising Fears of a Full-Scale Trade War

Rising tensions over US claims on Greenland have pushed the European Union to suspend approval of a major trade deal with the United States, escalating fears of a broader transatlantic trade conflict.
The decision follows repeated statements by US President Donald Trump asserting Washington’s intention to take control of Greenland, a Danish territory, along with the announcement of new 10 percent tariffs on several European countries. EU leaders view these actions as a direct challenge to the sovereignty of an EU member state and a threat to stable trade relations.
European officials warned that the use of tariffs as political pressure leaves the bloc with little choice but to halt progress on the agreement. The deal, agreed in principle last year and awaiting European Parliament approval, was widely regarded as favourable to the US, but is now on hold amid growing political confrontation.
The standoff has unsettled financial markets, with stock indices in both Europe and the United States recording sharp declines as investors fear a potential trade war. EU lawmakers have also signalled that retaliatory tariffs on US goods could be reinstated if tensions continue.
With the future of the trade agreement uncertain, relations between the EU and the US appear increasingly strained, raising concerns about the stability of one of the world’s most significant trading partnerships.