The world is watching for retaliatory measures as the European Parliament is poised to suspend the US trade deal over pressure on Greenland, sending shockwaves through global financial markets and increasing the risk of another trade war.
On January 21, 2026, at 00:38, the BBC reported that: Sources close to the European Parliament's International Trade Committee indicate that the Parliament is preparing to suspend the ratification process of the trade agreement with the United States reached last July. Amid escalating tensions between the United States and Europe over President Donald Trump's continued pressure to gain control of Greenland and his threat to use tariffs as a tool for pressure,
This move marks a further escalation in the trade conflict between the United States and Europe and has sent shockwaves through global investment sentiment. Concerns about a new trade war and retaliatory measures have resurfaced. Stock markets on both sides of the Atlantic fell on Tuesday, with European markets continuing their decline for a second day. The U.S. Dow Jones index dropped more than 1.7%, the S&P 500 fell more than 2%, and the Nasdaq closed down about 2.4%.
In the Asia-Pacific region, stock markets showed mixed movements, with indices in Japan and Hong Kong slightly weaker, while some mainland Chinese and Hong Kong stock markets edged slightly higher. In commodities, gold prices continued their upward trend, hitting a new record high above $4,800 per ounce for the first time, while silver weakened from its all-time high above $95 per ounce reached on Monday, reflecting the inflow of safe-haven assets amid heightened uncertainty.
In the money market, the US dollar remained stable against major currencies after falling 0.5% the previous night, its sharpest daily decline since early December.
Previously, trade tensions between the US and Europe had eased after both sides reached an agreement at Trump's Turnberry Golf Course in Scotland in July. The US agreed to reduce tariffs on most European goods to 15% from the previously threatened 30%, while Europe pledged to increase investment in the US and adjust certain policies to benefit US exports. However, the agreement still needs approval from the European Parliament before it can take effect.
But the situation took a turn when Trump threatened to impose additional tariffs on Greenland over the weekend, as stated by Manfred Weber, a member of the European Parliament from Germany. "We are unable to approve the agreement at this time." Meanwhile, Bernd Lange, chairman of the European Parliament's Committee on International Trade, stated that there was no alternative but to suspend the deal, as the United States was using tariffs as a tool of coercion and infringing upon the sovereignty and territorial integrity of European Union member states.
The decision revives questions about the European Union's retaliatory measures. Previously, the EU had announced a list of US goods worth over €9.3 billion that could be subject to retaliatory tariffs, before suspending the plan during negotiations. This suspension is set to end on February 6th, and the retaliatory tariffs will take effect on February 7th if there is no extension or ratification of a new agreement.
French President Emmanuel Macron He is one of the leaders who has pushed Europe to consider retaliatory measures, including the use of tools to deter trade coercion, also known as... “trade bazooka” They stated that using taxes as a tool for pressure on sovereignty is unacceptable.
Meanwhile, the United States warned Europe against retaliation, with US Treasury Secretary Scott Bescent urging European leaders to remain calm and refrain from responding, adding that Trump would personally deliver the message. The Commerce Secretary and the US Trade Representative also reiterated that the US would not let retaliatory measures go unanswered.
Behind the trade tensions lies legal uncertainty, as the U.S. Supreme Court prepares to consider the legality of several tariffs imposed by Trump last year, which could impact the direction of U.S. trade policy in the future.
refer : bbc.com
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