Investing decisions should be based on the research reports of Golden麒麟 analysts, which are authoritative, professional, timely, and comprehensive, helping you uncover potential thematic opportunities! In a renewed effort to acquire Greenland, US President Donald Trump has once again brandished the tariff club against Europe. On January 17, local time, Trump announced a 10% tariff increase on eight European nations, including Denmark, the UK, France, and Germany, which opposed his bid for Greenland, with plans to raise it to 25% several months later. This American move has caused an uproar in Europe. It was reported that the European Parliament has confirmed the suspension of approval for the trade agreement reached by the US and EU last July. Concurrently, several senior European Parliament officials are calling for retaliatory measures using a trade "rocket launcher" against the US, specifically the EU's "Anti-Coercion Instrument" (ACI). "Approving the EU-US trade agreement now would be utterly foolish." Manfred Weber, leader of the European Parliament's largest political group, the European People's Party (EPP), stated on Saturday that the escalation of US-EU tensions means the Parliament will not vote to pass the trade deal. "The EPP supports the EU-US trade agreement, but given Donald Trump's threats regarding Greenland, it is impossible for the agreement to be approved at this stage. The imposition of 0% tariffs on US products must be put on hold," Weber wrote on his X account. In July 2025, Trump and European Commission President Ursula von der Leyen announced a new trade agreement between the US and EU. Under this deal, the US would impose a 15% tariff on most EU exports like cars, pharmaceuticals, semiconductors, and lumber, while the EU committed to eliminating tariffs on US industrial goods and providing favorable market access for American seafood and agricultural products. Reportedly, other members of von der Leyen's ruling coalition, including the center-left Socialists and Democrats (S&D), the centrist Renew Europe group, and the left-wing Greens, have been pushing for a strategic pause in implementing the EU-US trade agreement. Von der Leyen's own EPP had only just been persuaded to this position. The European Parliament was originally scheduled to vote on January 26 on whether to remove EU import tariffs on a range of US goods. Due to increasing pressure from the Trump administration on the Greenland issue, the Parliament decided on the 14th to first postpone the vote on whether to suspend the EU-US trade agreement. It is anticipated that Members of the European Parliament will formally confirm the freezing of the agreement during a meeting on the 21st. Swedish MEP Karin Karlsbro told the press that the EU-US trade agreement would not garner sufficient support from parliamentarians. "I believe it is impossible for the European Parliament to give the green light to advance the tariff agreement when we make our decision on Wednesday," Karlsbro said. "On the contrary, the EU must prepare to respond to President Trump's tariff attacks, including those targeting Sweden." "We cannot rule out the possibility of retaliatory tariffs or deploying the 'rocket launcher' if pressure and coercion continue," Karlsbro added. The EU's so-called trade "rocket launcher" refers to the EU's Anti-Coercion Instrument, which provides a range of punitive measures that can be taken against trade partners attempting to threaten the EU, including restrictions on investment and public procurement, as well as limitations on intellectual property protection. Valérie Hayer, President of the Renew Europe group, stated bluntly that Trump's actions were "unacceptable" and said "it is time to move from dependence to deterrence." "The EU should be prepared to deploy targeted and appropriate countermeasures," Hayer wrote on her X account. "Activating the EU Anti-Coercion Instrument should be clearly considered, as it was designed precisely for situations of economic intimidation of this nature." Bernd Lange, a German Social Democrat MEP and Chair of the European Parliament's International Trade Committee, also expressed support for the unprecedented use of the "rocket launcher" tool in an interview. Lange said: "The Anti-Coercion Regulation was drafted with the intention that we can employ various measures to resist if trade policy is used as political leverage. Therefore, I call on the European Commission to immediately initiate the procedure and open an investigation." Kathleen Van Brempt, Vice-President of the Socialists and Democrats group responsible for trade, also endorsed the EU's use of the Anti-Coercion Instrument. In a statement, she said: "It is utterly outrageous that Donald Trump is using tariffs and economic threats to forcibly advance illegal territorial claims." Brempt emphasized that approving the trade agreement was not a pragmatic move but "utterly foolish." "If this doesn't count as coercion, then what does?" she added.
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