The European Parliament has suspended the approval of a key US trade deal agreed in July in protest against Donald Trump's demand to take over Greenland.
The suspension was announced in Strasbourg, France, on Wednesday, as the US president addressed the World Economic Forum in Davos.
The move followed renewed trade tensions between the US and Europe sparked by Trump's bid to acquire Greenland, which had rattled financial markets, reviving talk of a trade war and the possibility of retaliation against the US.
Hours later, Trump said on social media he had reached a framework deal on Greenland's future and would not carry out threats to put new tariffs on eight Nato members.
Trade tensions between the US and Europe had eased since the two sides struck a deal at Trump's Turnberry golf course in Scotland in July.
That agreement set US levies on most European goods at 15%, down from the 30% Trump had initially threatened as part of his Liberation Day wave of tariffs in April. In exchange, Europe had agreed to invest in the US and make changes on the continent expected to boost US exports.
The deal would have still required approval from the European Parliament to become official.
But on Wednesday, days after Trump threatened fresh US tariffs over Greenland, Bernd Lange, chair of the European Parliament's International Trade Committee, said it was left with no alternative but to suspend work on the two Turnberry legislative proposals.
He stated that work to implement the trade plans would be on hold until the US decides to re-engage on a path of cooperation rather than confrontation.
This move has raised the possibility that the EU might advance with tariffs on a potential €93bn worth of American goods it announced last year in response to Trump's Liberation Day tariffs.
The EU had delayed these tariffs while the trade deal was being finalized, but they could now come into force on 7 February unless further negotiations occur.
Lange emphasized that there would be no possibility for compromise until Trump's threats ended, additionally mentioning the potential for the use of the anti-coercion instrument for retaliatory measures.
In Davos, Trump reiterated his interest in acquiring Greenland but stated, I don't have to use force, I don't want to use force, I won't use force.
He called for immediate negotiations with Denmark about the acquisition, which he argues is crucial for US and global security, while announcing a framework for a future deal soon after.
