The European Parliament plans to suspend approval of the US tariffs deal agreed in July, sources close to its trade committee said. The announcement is set for Strasbourg, France, on Wednesday. This move escalates tensions after President Trump threatened new tariffs over Greenland, rattling financial markets and reviving trade war fears.

The July agreement set US levies on European goods at 15%, down from Trump's initial 30% threat. In exchange, Europe promised investments and policy changes to boost US exports. However, the deal requires parliamentary approval, which influential MEP Manfred Weber said is "not possible at this stage" following Trump's Greenland demands.

EU retaliation plans targeting €93bn in American goods were paused during negotiations, but that reprieve ends on February 6. Without an extension or deal approval, EU levies take effect February 7. French Prime Minister Emmanuel Macron urged the bloc to consider its "trade bazooka" tool, while US officials warned against retaliation.