Tensions between the European union and the United States have escalated to such an extent that the EU has put negotiations on hold for the proposed EU–US trade deal after US President Donald Trump announced new tariffs on Denmark and several other European countries, linking the move to his push to acquire Greenland.

EU leaders issued a warning, saying that the tariffs could damage transatlantic relations while reaffirming their full support for Denmark and Greenland, underscoring that sovereignty and territorial integrity are non-negotiable principles.

The trade deal, agreed last July 2025, was designed to reduce tariffs on imports from the US and strengthen bilateral economic ties.

Following Trump’s warning to impose tariffs unless Greenland is sold, the EU called for a pause in the ratification process of the trade deal announced in July 2025. The agreement, which includes all 27 EU member states.

Trump’s posts on Truth Social have cast doubt on the deal’s future. He threatened 10 percent tariffs on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland starting February 1, 2026, rising to 25 percent from June 1, unless Greenland is “completely and totally” sold to the United States.

Trump cited Greenland’s "strategic location and mineral resources as critical to US national security" and warned, “Starting on February 1st, 2026, all of the above-mentioned Countries…will be charged a 10 percent tariff on any and all goods sent to the United States of America. On June 1st, 2026, the Tariff will be increased to 25 percent. This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland.”

European officials, including European People’s Party Vice-President Siegfried Muresan, said the announcement undermines the stability the trade deal was meant to ensure.

“Stability would have been the only gain from last year's trade deal between the US and the European Union. Today's announcement by President Trump to eventually impose new tariffs on several EU member states takes away that stability. This is why the postponement of the ratification of that trade deal is justified,” Muresan said.

He also confirmed in a post on X that the ratification of the July 2025 deal will have to wait, “We were supposed to ratify the EU-US trade deal from last July very soon, reducing tariffs for imports from the US into the European union to 0%. However, in light of recent developments, this ratification will have to wait a little longer in this new context.”

Trump is hell-bent on acquiring Greenland, a semi-autonomous territory of Denmark, citing national security concerns. Denmark and Greenland have rejected the idea, emphasising their right to self-determination.

In response to escalating tensions, Denmark has increased its military presence in Greenland, while Germany, Sweden, France, Norway, and the Netherlands have sent small contingents. European leaders have warned that any US attempt to seize Greenland could have serious implications for NATO and transatlantic security.