The European Union (EU) is considering imposing tariffs on the United States of up to €93 billion, as well as restricting access for U.S. companies to the EU market, in response to President Donald Trump’s recent trade threats against NATO allies that have sent troops to Greenland.
According to the British newspaper Financial Times, the list of tariff measures was drawn up last year and remained suspended until February 6 to prevent an escalation of the trade war between the EU and the United States. However, the issue was taken up again this week in Brussels, where the 27 European ambassadors discussed its activation.
The European Union is considering activating the anti-coercion instrument against the United States
In addition to tariffs, the European Union is considering applying the anti-coercion instrument, a tool adopted in 2023 that allows it to limit foreign companies’ access to the European market when a country uses economic measures as political pressure.
According to the Financial Times, this response seeks to strengthen the EU’s negotiating position ahead of potential meetings with Donald Trump at the World Economic Forum in Davos, where the U.S. president would hold private talks with European leaders, including European Commission President Ursula von der Leyen.
Trump threatens tariffs over military deployment in Greenland
Donald Trump warned that he will impose 10% tariffs starting February 1 on products from Germany, France, the United Kingdom, Sweden, Norway, the Netherlands, Finland, and Denmark—NATO member countries that sent troops to Greenland.
The U.S. president indicated that these tariffs could increase to 25% in June and remain in effect until an agreement is reached for the United States to fully and completely purchase Greenland.
“World peace is at stake! China wants Greenland, and Denmark can’t do anything about it”, Trump wrote on his social media platform Truth Social.
Read more: Trump to Meet Global Business Leaders at Davos, Drawing Spotlight at World Economic Forum
Europe responds: We will not be blackmailed
A European diplomat quoted by the Financial Times described Trump’s strategy as “purely mafia-like” and assured that the EU has “clear retaliatory instruments” if the threats continue.
“We want to give dialog a chance, but also make it clear that Europe can defend itself”, the official said.
Danish Prime Minister Mette Frederiksen was unequivocal in declaring that Europe will not be blackmailed, while France and Germany are pushing for a coordinated response and considering formally activating the anti-coercion instrument.
Trade and political tensions between the European Union and the United States
This weekend, the main parties in the European Parliament decided to postpone the vote to reduce tariffs on U.S. products, a measure that was part of a trade agreement scheduled for 2025.
The President of the European Council, António Costa, stated that the EU is prepared to defend itself against any form of economic coercion.
From Washington, U.S. Treasury Secretary Scott Bessent argued that Europe is too weak to guaranty Greenland’s security and defended Trump’s stance.
“Let’s incorporate Greenland into the United States and there won’t be any conflict. The United States is the strongest country in the world; the Europeans project weakness”, he said in an interview with NBC.
The confrontation between the European Union and the United States over Greenland, trade tariffs, and NATO’s role opens a new chapter of geopolitical tension that could lead to a transatlantic trade war, with direct impacts on global markets and the international economy.
