Breaking: Eu Tears Up Trade Deal With Us, Considers Launching "Trade Nuclear Bomb" To Retaliate Against United States

Breaking news, the European Parliament has confirmed that it will not approve the "EU-US trade agreement" in response to Trump's imposition of tariffs on eight European countries, citing the reason of acquiring Greenland.

This creates new uncertainty for the "ceasefire" in the US-EU trade war, reigniting the possibility of renewed trade tensions between the US and Europe.

The "EU-US Trade Agreement," signed in July 2025 by Donald Trump and European Commission President Ursula von der Leyen, was originally intended to avert an all-out trade war. Its main contents include:

The United States imposes tariffs of up to 15% on most EU goods, but tariffs on steel and aluminum are 50%.

The EU will significantly reduce or abolish tariffs on US industrial goods and some agricultural products, with most tariffs at 0%. The EU will purchase $750 billion in US energy and make an additional $600 billion investment in US strategic sectors.

The protocol has been partially implemented but has not yet been approved, with a vote originally scheduled for January 26, 2026.

Currently facing the risk of being frozen or directly rejected.

EU lawmakers have almost unanimously agreed to confirm the freeze/suspension of the agreement at their meeting on Wednesday, January 21.

On January 17, Trump announced that a 10% additional tariff would be imposed on goods imported from eight European countries—Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland—starting February 1. If an agreement on "fully purchasing Greenland" is not reached, the tariff will increase to 25% starting June 1.

Manfred Weber, Chairman of the European People's Party (EPP), the largest group in the European Parliament, stated that while he originally supported a trade agreement between the EU and the US, it is currently impossible to approve such a deal in light of Trump's threats regarding Greenland. He emphasized that the plan for 0% tariffs on American products must be suspended.

Bernd Lange, Chairman of the EU Trade Committee, also called for a suspension of the agreement's implementation and for the consideration of activating the "previously unused Anti-Coercion Instrument" (ACI), also known as the "trade nuclear option," for countermeasures.

The EU Anti-Coercion Instrument (ACI) is the European Union's strongest trade defense mechanism that came into force in 2023, designed to deter and counter third-country attempts to influence EU policy choices through trade measures (such as export bans or tariffs). It has never been actually deployed and exists primarily as a "nuclear option."

The EU's anti-coercion instrument provides a range of punitive measures to combat trade rivals seeking to threaten the EU. These include tariffs and trade barriers, restrictions on investment and participation in public procurement programs, restrictions on intellectual property rights, and export controls.

The triggering condition requires a qualified majority in the EU Council of 27 (at least 15 countries, representing 65% of the total votes) to agree that a third country's actions constitute "coercion".

Despite the European Parliament's call to trigger the anti-coercion instrument, this may be difficult to achieve given the long-standing divisions among EU member states on how to avoid further irritating Washington.

Several European leaders have unanimously stated that "the threat of tariffs is unacceptable" and "allies should not treat each other this way," and will hold an emergency ambassador-level meeting on Sunday to discuss countermeasures. The next few weeks (especially during the Davos Forum) will be crucial for the game.

The EU must prepare for a new wave of tariff offensives from Trump.