EU-US trade Deal Suspended Amidst Trump Threats and French Calls for Retaliation

Negotiations on a major trade agreement between the European Union and the United States have been suspended following a broad consensus among key political groups in the European Parliament, including those encompassing the People’s Party (EPP), the socialists and Democrats (S&D), and the Identity and democracy (ID) group, formerly known as Chega. This suspension effectively halts the ratification and implementation of the agreement.

Concerns Over Trump’s Statements and the “Anti-Coercion” Tool

The People’s Party (EPP) initially expressed reservations about the deal. Manfred Weber, the EPP group leader, stated on January 20, 2026, via X (formerly Twitter), that given former President Donald Trump‘s threats regarding Greenland, ratification was “not possible at this stage.” https://twitter.com/ManfredWeber

French President Emmanuel Macron has advocated for the EU to utilize its anti-coercion instrument – often referred to as the “European bazooka” – against the United States. Speaking at the World Economic Forum in Davos on January 20, 2026, Macron warned that the EU might be compelled to employ this tool in response to potential US actions. “We could be put in a position where we have to use the anti-coercion instrument against the United States. This is crazy. It is the result of unpredictability and useless aggression,” he stated. https://www.elysee.fr/en/

Macron urged other EU member states to be prepared to implement the “bazooka,” which was designed to “deter and respond to economic coercion” against the EU. https://www.consilium.europa.eu/en/policies/trade/anti-coercion-instrument/ Initially conceived as a measure against China, the instrument has not yet been used but allows for restrictions on the activities of US companies within the EU.

Political Divisions Within the European Parliament

The Socialists and democrats (S&D), Renew Europe (liberals), and the Greens/EFA have already called for the activation of the anti-coercion instrument. The European Left (GUE/NGL),through its vice-president martin Schirdewan,has advocated for a complete suspension of the trade agreement,arguing for the need to “protect our economy,activate the Anti-Coercion Instrument and impose a digital tax.”

Within the right-leaning factions,the European Conservatives and Reformists (ECR) are divided,with the Patriots faction supporting suspension,while the ECR itself and the New Centre-Right (NCR) consider it a mistake. The EPP, through its president, has appealed for de-escalation and opposes the implementation of the anti-coercion mechanism, which could limit US companies’ access to European public contracts.

Nicola Procaccini, vice-president of the ECR, also voiced opposition to the anti-coercion measures. Portugal’s Minister of Foreign Affairs, Paulo Rangel, acknowledged “some merit” to the idea of utilizing the mechanism.

Key Takeaways

• A major EU-US trade deal is currently suspended due to concerns over statements made by former President Donald Trump and the potential for economic coercion.
• France is leading the call for the EU to utilize its “anti-coercion” instrument, potentially imposing restrictions on US companies.
• There is significant division within the European Parliament regarding the appropriate response, with differing views across political groups.
• The future of the trade agreement remains uncertain, dependent on evolving geopolitical dynamics and internal EU consensus.

published: 2026/01/21 07:33:14