EU pauses massive counter‑tariffs on US amid Greenland tariff threat reversal
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The EU has decided to extend its suspension of €93 billion ($109 billion) in retaliatory tariffs against the United States for another six months. This comes after Donald Trump, the 47th president of the United States, finally backed off his plan to punish EU countries that refused to support his push to buy Greenland. Trump had earlier warned that starting February 1, a 10% tariff would hit eight EU countries, climbing to 25% in June, unless a Greenland deal was made. But after meeting NATO Secretary General Mark Rutte in Davos, Trump dropped the threat and claimed a new deal had been reached. That last-minute reversal gave EU lawmakers just enough political cover to pause their retaliation. Trump threat forces EU to delay anti-US trade tools The European Commission, which handles trade policy for the EU, now plans to officially propose extending the pause, which was due to expire on February 7. Olof Gill, a spokesperson for the Commission, told reporters Friday in Brussels, “We achieved our objective through diplomatic and political means, which will always be our preference rather than going down a spiral of measures and countermeasures.” He added that the EU can bring back the counter-tariffs at any time if needed. The proposed EU retaliation, already approved but not yet enforced, would have slammed major American products (like Boeing aircraft, US-made cars, and bourbon) if the Greenland pressure campaign had gone forward. That threat was tabled during earlier negotiations when Trump and European Commission President Ursula von der Leyen signed a trade pact in Scotland last year. But Trump’s obsession with Greenland derailed that deal again last week. The European Parliament had frozen the ratification of that trade agreement when Trump escalated the Greenland issue. Now, with Trump reversing his position after Davos, the Parliament is expected…
Filed under: News - @ January 23, 2026 4:21 pm