The European Parliament has officially halted the ratification procedure on its US trade deal, as a sign of protest after Donald Trump threatened to apply 10 per cent tariffs on European exports unless the bloc consents to his acquiring Greenland.

The freeze is the most solid material reaction that the EU has ever exhibited to date against what some leaders last week referred to as blackmail.

Bernd Lange, who is the chairperson of the European Parliament trade committee, stated that they will not be able to compromise until the threats [on Greenland] are removed in the way of ratifying the US deal, which promised Americans a new era of 0% tariffs on much of the industrial exports.

Lange assured that the offer or commitment of the EU to purchase energy to the tune of $750bn (£560bn) will not be influenced by the decision because it was independent of the tariff agreement.

The president of the European Commission, Ursula von der Leyen, made a detour to Brussels, rather than going to Davos to meet Trump, after a visit to parliament, in an indication of the decline in transatlantic relations.

She went back to make ready an emergency summit meeting in Brussels at 7 pm on Thursday to hear about various options available to be used by the EU in the event that the president of the US proceeded with his threat of imposing tariffs.

They comprise imposing tariffs totalling the value of 93bn (81bn) on US exports to the EU and the implementation of an anti-coercion tool never used before, regarded as the nuclear deterrence of trade sanctions.

Although it was initially meant to curb the Chinese way of forcing other member states, it would enable the EU to deny US businesses the right to reach the EU market.

Theoretically, the EU might go directly targeting US tech and crypto companies, but it can also target aircraft manufacturers or farm products. However, European buyers might protest additional charges or limits on the US firms, including Apple or Netflix.

“The EU stated that it was still in the process of seeking diplomatic solutions to preclude a trade war, and Lange admitted that a lot could happen between the present and 2 February when Trump threatens to implement the tariffs. Day-by-day surprises are invariably coming out of the White House,” he said.

Though a trade war with the US would be more than devastating, the efforts of the EU in diversifying its markets were also severely challenged by the parliament when MEPs voted by a majority of only 10 to refer the Mercosur trade deal with Latin American nations to the European Court of Justice.

Lange criticized the move and the European Commission described the move as “regrettable,” with Friedrich Merz, the chancellor of Germany, also criticizing the move, with car manufacturers in Germany criticizing the move.

The European Commission can make the Mercosur agreement permanent by creating a temporary agreement, as has been the case with the Brexit deal with the UK. But Lange cautioned that such a move by the Commission would be a “massive institutional clash within the bloc.”