New Delhi, Jan. 21 -- Amid escalating tensions with the US over President Donald Trump's ambitions for Greenland, the European Parliament will soon announce the suspension of the approval of the US trade deal agreed in July.

According to a report by the BBC, the suspension is set to be announced in Strasbourg, France on Wednesday.

The suspension will mark an escalation in tensions between the US and the European Union (EU), which has gone up a notch following Trump's announcement of fresh, incremental tariffs on eight European nations over the Greenland issue.

Wednesday's announcement is expected to further rattle markets amid growing fears of a trade war, with shares on both sides of the Atlantic opening lower on Tuesday.

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