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European Union Suspends Trade Deal With U.S. Over Trump’s Greenland Push
The European Union, one of America’s largest trading partners, voted on Wednesday to pause a trade deal with the United States that was initially agreed upon last summer. The finalization of the major trade deal is now uncertain over the bloc’s opposition to President Donald Trump’s efforts to acquire Greenland.
European Parliament member Bernd Lange said that Trump’s plans to impose a 10% tariff on European countries that oppose his Greenland push go against the framework of the U.S.-E.U. trade deal, CNBC reported. Lange pointed to Trump’s remarks at the World Economic Forum on Wednesday, when the president said that he would continue to push for control of Greenland and called for “immediate negotiations.”
“I guess he didn’t revise his position,” Lange said. “He wants to have Greenland as part of the United States as quick as possible.”
Lange, the chair of Parliament’s International Trade Committee, added in a statement that the European Union will pause its work on the trade deal “until the US decides to re-engage on a path of cooperation rather than confrontation,” Fox Business reported. While the United States and the European Union agreed to the trade deal’s framework last year, it can’t go into effect until the European Parliament gives final approval.
During his speech, Trump said he would not use military force to take over Greenland, which Lange called a positive development, but the European Parliament member added that until Trump takes the additional tariff threat off the table, “There will be no possibility of compromise.” Lange called Trump’s tariff threats “an attack against the economic and territorial sovereignty of the European Union.”
Trump imposed tariffs on European countries shortly after being sworn in last year as part of his massive “Liberation Day” tariff agenda, and the European Union responded with tariffs on U.S. goods. The White House announced a trade agreement with the European Union last August, saying that the bloc “intends to eliminate tariffs on all U.S. industrial goods and to provide preferential market access for a wide range of U.S. seafood and agricultural goods.” As part of the deal’s framework, the Trump administration agreed to drop the tariff rate on the European Union to 15%.
European countries have roundly criticized Trump over his plan to take over Greenland, but the president continues to argue that the United States needs the territory for national security. Greenland controls its own internal affairs, but Denmark oversees the territory and guarantees its security.
While speaking in front of world leaders in Davos, Switzerland, on Wednesday, Trump said the United States needs Greenland to stop the “bad guys.” Trump has repeatedly claimed that China and Russia have their eyes set on conquering Greenland, which would threaten U.S. and global security.
“All the United States is asking for is a place called Greenland, where we’ve already had it as a trustee, but respectfully returned it back to Denmark not long ago after we defeated the Germans, the Japanese, the Italians and others in World War II,” Trump said. “We gave it back to them.”
“So we want a piece of ice for world protection,” Trump added. “And they won’t give it. … They have a choice: you can say yes, and we will be very appreciative, or you can say no. And, we will remember.”