The European Parliament is planning to suspend approval of the US tariffs agreement that was made in July.
The announcement is expected to be made in Strasbourg, France, on Wednesday, as per BBC.
This decision would further increase tensions between the US and Europe, especially as US President Donald Trump has recently intensified his efforts to acquire Greenland and threatened new tariffs over the issue.
Trump on Saturday, January 11 announced plans to impose higher tariffs on the UK and other European allies unless the US is allowed to purchase Greenland.
These measures will target imports from the UK, Denmark, Norway, Sweden, France, Germany, Netherlands and Finland.
Trump said in a lengthy statement, "We have subsidised Denmark, and all of the Countries of the European Union, and others, for many years by not charging them Tariffs, or any other forms of remuneration. Now, after Centuries, it is time for Denmark to give back — World Peace is at stake!"
US-Europe trade tensions had eased after a July deal that lowered US tariffs on European goods from 30% to 15% with Europe agreeing to invest in the US and boost American exports.
Although the US-Europe trade deal still requires approval from the European Parliament to become official, Manfred Weber, prominent German MEP said on Saturday that it cannot be approved right now due to Trump's tariffs threat.
