Trump’s Greenland Tariffs Spark EU Trade Fightback Plans
EU leaders are bracing for a serious trade clash after US President Donald Trump threatened new tariffs linked to his bid to gain control of Greenland.
Trump announced that from Feb. 1 he will impose a 10 % tariff on imports from eight European countries unless they back his Greenland plan.
He said the tariff would rise to 25 % by June 1 if negotiations fail.
Countries targeted include Denmark, France, Germany, the UK, and Nordic EU members.
European capitals swiftly condemned the move. Leaders called Trump’s threats economic blackmail and a risk to decades‑old transatlantic cooperation.
Officials say tariffs tied to territorial matters are unprecedented among NATO allies.
EU Considers Retaliation and Trade Tools
Brussels is now debating possible counter‑measures.
One option is to reactivate €93 billion of previously prepared tariffs on US imports.
These duties were initially agreed before a trade pact last year, then suspended.
Another, far stronger possibility is activating the EU’s Anti‑Coercion Instrument (ACI).
Often dubbed Europe’s “trade bazooka”, the ACI is a legal framework created in 2023 to counter economic pressure from third countries.
If triggered, the ACI could allow the EU to impose retaliatory tariffs and limit or block access to the EU market for US goods and services.
It could also restrict US investment or participation in public contracts.
French President Emmanuel Macron has publicly backed use of the ACI against the United States.
German members of the European Parliament have also urged activating it.
Diplomacy and Economic Risks Ahead
Not all EU states want escalation.
Some officials warn a tariff war with the US could hurt European consumers and markets.
Germany has emphasized seeking negotiations first.
The EU has called an emergency summit in Brussels to finalise a response.
Leaders also hope diplomacy during the World Economic Forum in Davos will reduce the risk of a full trade war before tariffs take effect.
European officials insist they seek dialogue but stress they will protect sovereignty and economic interests if Trump’s tariff plan moves forward.
