Amid the ongoing tussle between Europe and the United States over US President Donald Trump's demand to acquire Greenland and subsequent threat of tariffs, the European Parliament has decided to suspend its work on the European Union-US trade deal.

The European Parliament's trade committee was due to set its position in votes on January 26 and 27. However, with the latest announcement, the vote has now been postponed.

In a press conference, the chair of the trade committee Bernd Lange on Wednesday said that the new tariff threats had broken the Turnberry deal, saying it would now be put on hold until further notice.

The EU assembly has been debating legislative proposals to remove many import duties levied on the US goods by the EU, a key part of the agreement signed between the political and economic union of Europe and the United States in Scotland's Turnberry, at the end of July.

The Parliament is also deliberating to continue zero duties for US lobsters, which was initially agreed during the first term of President Trump in 2020.

These proposals require approval by the European Parliament and EU governments. Thera are many lawmakers who have criticised the trade deal of being lopsided, favouring the US as the EU is required to cut most import duties while the US sticks to a broad rate of 15 per cent.

The development comes after a massive showdown between US and its NATO allies at the World Economic Forum in Davos, Switzerland, over Greenland.

While Canadian PM Mark Carney and French President Emmanuel Macron called out Trump over aggressive approach, Trump doubled down on his Greenland demand.

In critical tone towards Europe, Trump warned that "certain places in Europe are not even recognisable", expressing concern that the continent is "not heading in the right direction."

Trump questioned US's 1916 decision to recognise Danish sovereignty over Greenland after the war. He said, "How stupid were we to do that? But we did it, we gave it back. And how ungrateful are they now?"

Doubling down on his claim with assertion, Trump said, the United States has the power to secure Greenland. He cited recent US military operation in Venezuela as proof of its strength.