President Donald Trump is backpedaling one of his most extreme tariff threats against the European Union (so far).
Here’s the rundown: This past weekend, the President pledged to increase tariffs on European allies by an additional 10% for refusing his request to acquire Greenland (a semi-autonomous territory within the Kingdom of Denmark).
In response, the E.U. decided to suspend the ratification process for its latest trade deal with the U.S., which would have capped most U.S. tariffs on E.U. imports at 15%.
However, as highlighted by Bernd Lange, the chairman of the European Parliament's international trade committee, in a post on X:
“We have just decided to suspend work by [the European Parliament] on the legal implementation of the Turnberry deal.”
Bernd Lange
Adding to the post, he wrote, “Our sovereignty and territorial integrity are at stake. Business as usual is impossible.”
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From there: Leaders of the 27 E.U. countries confirmed plans to meet this week to discuss possible retaliatory measures.
Those measures included the potential for a never-before-used measure called the "Anti-Coercion Instrument."
Also known as the trade "bazooka," this would allow the bloc to hit almost any U.S. good or service with painful restrictions, including American investments, IP protections, and business licenses.
The kicker is: Just hours after this announcement, President Trump shifted his stance, noting that the U.S. will not move forward with those tariffs on Feb. 1.
Reports suggest this decision came after talks with NATO leadership, which Trump said produced a framework for future negotiations involving Greenland and the broader Arctic region.
What we’re watching: While the tariff threat has been pulled for now, European officials have not yet indicated whether the pause on the trade deal will be lifted.
This is a developing story. Please check back for updates.
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