Advertisement
X

EU Weighs Retaliation as Trump Threatens Tariffs Over Greenland

EU ambassadors agreed to intensify diplomatic efforts to block proposed U.S. tariffs while preparing retaliatory options, after President Donald Trump linked trade measures to demands over Greenland.

Summary
  1. EU ambassadors agreed to intensify diplomatic efforts to block U.S. tariff threats while preparing retaliatory trade measures.

  2. President Donald Trump has linked higher tariffs on several European countries to demands over Greenland.

  3. The bloc is weighing options including fresh tariffs on U.S. imports and the possible use of its Anti-Coercion Instrument.

Advertisement

European Union ambassadors agreed on Sunday to step up efforts to dissuade U.S. President Donald Trump from imposing tariffs on European allies, while simultaneously preparing retaliatory measures, EU diplomats said.

Trump announced on Saturday that he would impose a new round of higher tariffs on several EU members starting February 1. The tariff threats target Denmark, Sweden, France, Germany, the Netherlands, Finland, Norway and the UK, and are linked to U.S. demands to be allowed to buy Greenland—an approach EU states have denounced as blackmail.

Danish Prime Minister Mette Frederiksen said in a written statement that “Europe will not be blackmailed,” adding that she was encouraged by the bloc’s unified support. Senior EU officials are set to discuss possible responses at an emergency summit in Brussels on Thursday.

One option under consideration is a package of tariffs on €93 billion worth of U.S. imports, which could automatically take effect on February 6 following the expiry of a six-month pause, according to reports. Another option involves deploying the Anti-Coercion Instrument (ACI), a tool that has never been used, which could restrict access to public tenders, investments or banking activity, and limit trade in services, including digital services, where the U.S. runs a surplus with the bloc.

Advertisement

European Council President Antonio Costa said in a social media post that consultations with EU members had shown strong commitment to supporting Denmark and Greenland, as well as readiness to defend the island against any form of coercion.

Danish Foreign Minister Lars Løkke Rasmussen said Denmark would continue to prioritise diplomacy. “The U.S. is more than the U.S. president. I’ve just been there. There are checks and balances in American society,” he said.

The eight targeted countries, which are already subject to U.S. tariffs of between 10% and 15%, have sent small contingents of military personnel to Greenland. In a joint statement on Sunday, EU members warned that tariff threats risk undermining transatlantic relations and could trigger a dangerous downward spiral.

The European Parliament is also considering suspending work on the EU–U.S. trade deal, reports said. The Parliament had been due to vote on removing several EU import duties on January 26–27.

Advertisement
Show comments