Sri Lanka, Jan. 21 -- The European Parliament is planning to suspend approval of the US trade deal agreed in July, according to sources close to its international trade committee.

The suspension is set to be announced in Strasbourg, France on Wednesday.

The move would mark another escalation in tensions between the US and Europe, as Donald Trump ratchets up his efforts to acquire Greenland, threatening new tariffs over the issue on the weekend.

The stand-off has rattled financial markets, reviving talk of a trade war and the possibility of retaliation against the US for its trade measures.

Shares on both sides of the Atlantic were lower on Tuesday, with European stock markets seeing a second day of losses. In the US, the Dow Jones sli...