The European Parliament has suspended its work on a proposed trade deal between the European Union and the United States following renewed tariff threats by US President Donald Trump and his controversial comments on Greenland, according to Reuters.

Reuters reported that the decision effectively puts on hold legislative proposals aimed at removing several EU import duties on US goods, a key element of the trade agreement reached in Turnberry, Scotland, at the end of July. The proposals, which also include the continuation of zero import duties on US lobster exports to the EU, require approval from both the European Parliament and EU member states.

Lawmakers had been debating the measures as part of efforts to ease transatlantic trade tensions, despite concerns that the deal was skewed in favour of the United States. Under the agreement, the EU would cut most of its import duties on US goods, while the US would retain a broad tariff rate of about 15 per cent.

According to Reuters, many European lawmakers had previously indicated a willingness to accept the deal, but with strict conditions such as an 18-month sunset clause and safeguards to address any surge in US imports. However, Trump’s renewed tariff threats against European allies who oppose his stance on Greenland have altered the political mood.

The European Parliament’s trade committee was scheduled to vote on its position on 26 and 27 January, but these votes have now been postponed. Speaking at a news conference on Wednesday, the committee’s chair, Bernd Lange, said the latest tariff threats had effectively undermined the Turnberry agreement, adding that the deal would be put on hold until further notice, according to Reuters.

The move, however, risks escalating tensions between Brussels and Washington. Reuters noted that freezing the deal could provoke a tougher response from the Trump administration, potentially including higher US tariffs on European goods.

The US administration has also ruled out making concessions, such as reducing tariffs on steel or spirits, until the trade agreement is finalised, raising uncertainty over the future of EU–US trade relations.