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EU prepares strong trade measures in response to Trump’s tariff threats
(MENAFN) The European Union is readying its most powerful trade measures in response to US President Donald Trump’s escalating tariff threats over Greenland, while holding them in reserve as a last-ditch diplomatic effort continues.
After an emergency meeting of EU ambassadors on Sunday, member states expressed strong solidarity with Denmark and Greenland but decided not to immediately activate the bloc’s Anti-Coercion Instrument (ACI), a tool often referred to as the “trade bazooka.”
Sources familiar with the discussions say the EU stands prepared to reinstate a previously suspended €93 billion ($108 billion) package of retaliatory tariffs on US goods if Trump moves forward with new duties.
The confrontation escalated on Saturday when Trump announced a 10% tariff, effective Feb. 1, on imports from eight European NATO countries—Denmark, Norway, Sweden, France, Germany, the Netherlands, the UK, and Finland—due to their opposition to his plan to acquire Greenland. He warned that the levy could rise to 25% by June 1 if no agreement is reached.
The EU’s response options operate on two levels. The first is the €93 billion retaliation package, initially prepared last year after Trump’s first tariff measures and temporarily suspended following a tentative US-EU trade deal last summer.
An EU diplomat told reports that this package could “automatically come back into force on February 6” if the dispute remains unresolved.
After an emergency meeting of EU ambassadors on Sunday, member states expressed strong solidarity with Denmark and Greenland but decided not to immediately activate the bloc’s Anti-Coercion Instrument (ACI), a tool often referred to as the “trade bazooka.”
Sources familiar with the discussions say the EU stands prepared to reinstate a previously suspended €93 billion ($108 billion) package of retaliatory tariffs on US goods if Trump moves forward with new duties.
The confrontation escalated on Saturday when Trump announced a 10% tariff, effective Feb. 1, on imports from eight European NATO countries—Denmark, Norway, Sweden, France, Germany, the Netherlands, the UK, and Finland—due to their opposition to his plan to acquire Greenland. He warned that the levy could rise to 25% by June 1 if no agreement is reached.
The EU’s response options operate on two levels. The first is the €93 billion retaliation package, initially prepared last year after Trump’s first tariff measures and temporarily suspended following a tentative US-EU trade deal last summer.
An EU diplomat told reports that this package could “automatically come back into force on February 6” if the dispute remains unresolved.
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