• The European Parliament is moving toward resuming ratification of the EU-US trade deal after initially freezing it in response to Trump's Greenland-related tariff threats.
  • Lead negotiators are scheduled to meet on February 4 to decide next steps on the agreement signed by Trump and European Commission President Ursula von der Leyen in July 2025.
  • Political groups remain divided on strategy, with the center-right European People's Party wanting to advance quickly while center-left and liberal groups prefer maintaining pressure on Washington.

A Thaw in Trade Relations

Efforts to implement the landmark EU-US trade agreement have hit a snag, but now appear back on track. The European Parliament has agreed to resume work on the deal after freezing ratification in late January 2026, when former President Donald Trump threatened 10% tariffs on several European countries unless the US took over Greenland. According to people familiar with the matter, the Parliament suspended the process, viewing Trump's threats as a breach of the existing agreement.

"We're seeing a significant de-escalation," said one EU official who spoke on condition of anonymity. "The Greenland threats have been walked back, and that changes the calculus." Trump subsequently described reaching a NATO agreement that prompted him to backtrack on his tariff ultimatum, though details remain unclear. The European Commission has been pushing to accelerate implementation, with negotiators scheduled to meet on February 4 to determine next steps.

Political Divisions and Strategic Calculations

While lawmakers broadly agree the deal should proceed now that Trump has retreated from his Greenland demands, political groups remain sharply divided on how to approach the implementation phase. The center-right European People's Party wants to advance quickly "to create more stability," according to sources within the group. Meanwhile, center-left and liberal groups prefer maintaining pressure on Washington and demanding clarity on the NATO agreement before moving forward.

Some Members of the European Parliament argue Parliament should "keep the pressure high" on the US rather than rush the process, according to multiple sources. The agreement itself has faced criticism from some lawmakers who describe it as unbalanced in the US's favor, featuring a 15% US tariff on EU goods while the EU commits to eliminating its own tariffs on US industrial imports. Attempts to reach representatives from the main political groups for comment were unsuccessful by press time.

The Agreement's Framework and Future Outlook

The EU-US trade framework, agreed in July 2025, aims to restore stability and predictability for EU consumers and businesses while addressing trade imbalances. The agreement includes EU tariff elimination on US industrial goods, US commitment to a maximum 15% tariff rate on EU goods, reduced non-tariff barriers, and cooperation on energy supplies and economic security. EU leaders are simultaneously considering activation of the "anti-coercion instrument"—sometimes called the trade bazooka—as a potential response mechanism to future coercive tariff threats.

The February 4 negotiator meeting will be decisive for determining whether Parliament moves toward a vote on unfreezing the agreement. The outcome depends on whether political groups can reconcile their competing priorities regarding the pace of implementation and additional demands on the US. Without a deal, businesses on both sides of the Atlantic would face continued uncertainty in an already volatile trade environment.

Correction: An earlier version of this article incorrectly stated the tariff threat escalation timeline. The 10% tariffs would have escalated to 25% by June 2026, not immediately.