Economy January 26, 2026

European Parliament Delays Decision on Restarting US Trade Deal Talks After Greenland Row

Lawmakers postpone vote as internal divisions persist and negotiators schedule reassessment for early February

By Derek Hwang
European Parliament Delays Decision on Restarting US Trade Deal Talks After Greenland Row

The European Parliament has deferred a decision on whether to resume work on an EU-US trade deal it suspended in protest over President Donald Trump's reported bid for Greenland and tariff threats. Votes scheduled for Monday and Tuesday were put off, with the trade committee chair saying a negotiating team will reconvene on February 4 to reassess. Lawmakers remain divided over the terms, potential concessions and timetable, and final approval still faces further negotiations between the parliament and EU governments.

Key Points

  • Decision on resuming work on the EU-US trade deal postponed until next week, with a negotiating team meeting set for February 4.
  • Proposals include removing many EU import duties on U.S. goods and maintaining zero duties for U.S. lobsters; both parliament and EU governments must approve.
  • Lawmakers are split over the deal’s balance - the EU would cut most import duties while the U.S. would keep an overall rate of about 15% - and some support conditions like an 18-month sunset clause.

The European Parliament has postponed until next week a decision on reopening work on a trade agreement with the United States that the assembly paused following President Donald Trump’s reported interest in acquiring Greenland and his threats of tariffs.

The parliament's trade committee had been due to set a position in votes on Monday and Tuesday, but no definitive decision was reached. Roberta Metsola, the assembly's president, had indicated last week that discussions could resume soon to bring the process back on track, but the chair of the trade committee, German Social Democrat lawmaker Bernd Lange, said in a social media post on Monday that the matter remained unresolved.

"European Parliament negotiating team will meet again next Wednesday, 4 February, to reassess the situation," Lange wrote, and he added that a decision would need to be taken in time for the committee's subsequent meeting on February 23-24.

Voices within the parliament remain split. Swedish Liberal Karin Karlsbro said improved trade relations between the U.S. and the EU were essential but insisted they must be based on mutual respect. "The door is open, but there is no need to rush the timetable," she said in a statement.

Officials caution that any significant delay or an effective freeze of the agreement could provoke a strong reaction from the Trump administration, potentially prompting higher U.S. tariffs. At the same time, the administration has ruled out making concessions - for example cutting tariffs on spirits or steel - until the broader deal is concluded.

The EU assembly has been debating legislative measures to remove a wide range of import duties on U.S. goods, which form a central component of the agreement reached at Turnberry, Scotland, at the end of July. The proposals also include continuing zero duties for U.S. lobsters, a provision initially agreed with President Trump in 2020. Those legislative texts require the approval of both the parliament and EU governments to take effect.

Many lawmakers have expressed concerns that the deal as negotiated is tilted in favor of the United States, with the EU expected to eliminate most of its import duties while the U.S. maintains an overall rate of about 15 percent. Nevertheless, several parliamentarians had previously appeared prepared to accept the agreement subject to safeguards, such as an 18-month sunset clause and mechanisms to address potential surges of U.S. imports.

Even if the trade committee moves forward with votes in the coming days, the pathway to final approval is likely to remain prolonged. The parliament and EU member-state governments would first need to agree on a single negotiated text, a process that could extend final ratification by a month or two beyond committee decisions.


Summary: The European Parliament delayed votes on whether to resume work on an EU-US trade deal after suspending negotiations over U.S. actions relating to Greenland and tariff threats. A negotiating team will meet on February 4 to reassess, with a final decision needed before the committee meeting on February 23-24. Lawmakers are divided over terms, and final approval requires further negotiation between the parliament and EU governments.

Risks

  • Delays or a freeze in the approval process could provoke retaliatory measures from the U.S. administration, including higher tariffs - impacting exporters and sectors exposed to tariff risk.
  • The lack of consensus in the parliament could extend negotiations, meaning uncertainty for industries that would be affected by changes in import duties on goods such as spirits, steel and seafood.

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