US-EU Trade Deal Hits a Snag as Trump Threatens Greenland Tariffs
In light of US President Donald Trump’s warning regarding potential tariffs on Denmark and other European nations concerning the sale of Greenland, the European Union has urged a halt to the ratification process of the EU-US trade agreement that was announced in July 2025. In a post on X, Siegfried Muresan confirmed the pause in the ratification process, stating, “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, given the recent developments, this ratification will need to be postponed for a bit longer in this new context.” The deal announced in July 2025, between the US and the EU, comprising 27 member states, unveiled a bilateral framework agreement aimed at resolving various tariff and trade issues. However, Trump’s recent post on Truth Social has raised questions about the future of the agreement.
On Saturday, Trump issued a threat to impose tariffs on Denmark and other European nations unless they consent to sell Greenland. In his post, Trump asserted that the action is essential for national security, referencing the interests of China and Russia in the territory. He proposed negotiations with the European nations but cautioned about increasing tariffs of 10 percent starting February 1, 2026, and 25 percent from June 1, 2026, should an agreement not be achieved, asserting it was “time for Denmark to give back” after years of US support. Beginning February 1st, 2026, all of the countries listed above (Denmark, Norway, Sweden, France, Germany, The United Kingdom, The Netherlands, and Finland) will incur a 10% tariff on any and all goods exported to the United States of America. Effective June 1st, 2026, the Tariff will rise to 25%.
“This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland,” Trump posted. Trump has consistently expressed a strong interest in acquiring Greenland, a semi-autonomous territory of Denmark, citing national security concerns. Washington asserts that Greenland’s strategic location and mineral resources are essential to its security; however, the leadership in Denmark and Greenland has dismissed this notion, underscoring their right to self-determination. Muresan, in a follow-up post, stated that Trump’s latest announcement undermines the “stability” which was the sole benefit expected from last year’s trade deal. He further stated that this was the reason why delaying the ratification of the trade deal is warranted. STABILITY would have been the sole benefit derived from last year’s trade agreement between the US and the European Union.
Today’s announcement by President Trump to eventually impose new tariffs on several EU member states undermines that stability. “This is why the postponement of the ratification of that trade deal is justified,” Muresan added. In the meantime, Germany, Sweden, France, Norway, the Netherlands, and Finland have deployed small contingents of military personnel to Greenland, while Denmark has bolstered its military presence in response to Trump’s proposal to acquire the Arctic island. The situation has raised alarms regarding its potential repercussions for NATO, as certain European leaders caution that a US effort to take control of Greenland might result in the alliance’s downfall.
