EU Freezes U.S. Trade Deal After Trump’s Appalling Davos Speech

Donald Trump’s Greenland fixation has frustrated Europeans enough that the European Parliament has suspended work on a trade deal with the United States.

The legislative body was looking at removing import duties against American goods, as part of an agreement made between the U.S. and the European Union over the summer at Trump’s golf course in Turnberry, Scotland. In order for the deal to be implemented, the Parliament and EU governments have to approve it, and the Parliament’s trade committee was going to vote on proposals on January 26 and 27.

But now, everything has been put on hold. The news came as Trump used his Wednesday speech at the World Economic Forum to triple down on his threat to seize Greenland (even though he mistook the territory for Iceland several times). Last week, Trump threatened to levy tariffs on eight European allies that oppose the U.S. annexing Greenland.

The deal was already facing some opposition over the fact that it favors the U.S., as the EU would be dropping most of its tariffs while the U.S. would keep a base rate of 15 percent. However, it was on track to be approved with conditions, including an 18-month sunset clause and the ability to respond to any surges in American imports.

Trump has refused to hear any reason on Greenland, telling reporters Wednesday, “You’ll find out,” when asked how far he is willing to go to take over the territory. Not only is a trade deal stalled, but European pension funds in Denmark and Sweden are exiting U.S. Treasuries. With Europe beginning to respond with economic measures against the U.S, will Trump budge at all on Greenland, or double down on his tariffs?