The European Parliament is poised to suspend its approval of a US tariffs deal, a move scheduled to be made public in Strasbourg on Wednesday. This decision heightens US-Europe tensions following US President Donald Trump's contentious efforts to acquire Greenland, which he tied to potential new tariffs. The development has stirred fears of a trade war, affecting financial markets and prompting reciprocal tariff threats.

Trade relations between the US and Europe had shown signs of improvement since a July agreement reduced US levies on European goods to 15% from a threatened 30%. Europe had agreed to invest in the US, expected to bolster US exports. However, the deal still requires European Parliamentary approval. On Saturday, responding to Trump's Greenland-linked tariff threat, German MEP Manfred Weber declared, "approval is not possible at this stage."

Amid these disputes, European stock markets declined for a second consecutive day, while the US saw the Dow Jones fall 1.3%, S&P 500 drop 1.5%, and Nasdaq decrease by 1.7%. The euro increased 0.7% against the dollar to $1.1731, and the pound rose to $1.346. Yields on 30-year bonds climbed as borrowing costs surged globally in the biggest long-term government debt sell-off in months.

With the European Parliament delaying vote plans, the EU is set to impose its own tariffs worth €93bn (approximately 4.02 trillion Thai baht) on American goods by 7 February unless an extension is agreed upon. French President Emmanuel Macron, among others, has urged the EU to consider all retaliatory options, critiquing the US for using tariffs as leverage against territorial matters.

The US response has been firm, with US Treasury Secretary Scott Bessent advising against European retaliation at the World Economic Forum in Davos. He suggested that restraint would be prudent, as President Trump would soon present his position directly. US officials have warned that any European countermeasures would provoke a US response.

The background to these tensions includes ongoing friction over tech and metal tariffs. As the two largest trade partners, the US-EU relationship involves over €1.6 trillion (about 69.2 trillion Thai baht) in annual trade. A pending Supreme Court decision on the legality of Trump's tariffs announced last year coincides with the looming issues around tariffs, reported the BBC.

Key Takeaways

• Europe plans to suspend approval of a key US tariffs deal, heightening tensions.

• Financial markets are reacting with significant declines on both sides of the Atlantic.

• EU prepares to enact retaliatory tariffs by February, escalating the trade conflict.

  

Adapted by ASEAN Now from BBC 2026-01-21

 

 

As an interesting aside to this topic, the ABC Australia is reporting today that (as a direct result of the actions of Trump), inside China, there's a nickname for him that tells you everything you need to know about how his actions are increasingly seen as a gift to Beijing.

They call him Chuan Jianguo, which translates to Chinese "nation builder" — a mocking title that suggests his foreign and domestic policies are driving countries away from Washington and pushing them into the embrace of China!

One only has to look at the relationship between Thailand and China to see this in action.

Pausing the trade deal doesn't go far enough IMO. They should start with enacting real taxes on US tech companies.

23 hours ago, stevenl said:

Pausing the trade deal doesn't go far enough IMO. They should start with enacting real taxes on US tech companies.

Maybe fining the pedo Elon $10m a pop for GROK's illegal production of child sexualised images?

It's either that or make him buy, then fly daily on, Ryanair.

55 minutes ago, Watawattana said:

Maybe fining the pedo Elon $10m a pop for GROK's illegal production of child sexualised images?

Yes, that's also an option.

TACO time again!

trump just proved again that when confronted by resistance from world leaders who stand up to him he isn’t the great negotiator he pretends to be and folds like a cheap suit. When he made his threat about tariffs he got the headlines he craved but displayed his ignorance of the effect they would have. Just like when he tried to take on Xi and the Chinese the financial markets fell and he caved even before the talks had started. The one obvious thing to takeaway from his Davos appearance is that nobody can trust anything he say’s or does because of his total erratic behaviour and illogical thinking about reality. Add his dementia, and all his other mental conditions, make him a loose cannon and he should be treated, and dealt with, accordingly.

Europe and China have American treasury bonds, let’s just cash them in and bankrupt the US. Case closed!