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EU prepares trade arms in response to Trump’s tariffs over Greenland
(MENAFN) The European Union is gearing up its most powerful trade tools in response to US President Donald Trump’s escalating tariff threats over Greenland, while still exploring last-minute diplomatic solutions, according to reports.
Following an emergency meeting of ambassadors on Sunday, EU member states expressed strong solidarity with Denmark and Greenland but opted not to immediately deploy the bloc’s Anti-Coercion Instrument (ACI), nicknamed the “trade bazooka.” Sources indicated the EU is prepared to reinstate a suspended €93 billion ($108 billion) package of retaliatory tariffs on US goods if Trump proceeds with new duties.
The confrontation intensified after Trump announced a 10% tariff on imports from eight European NATO countries—Denmark, Norway, Sweden, France, Germany, the Netherlands, the UK, and Finland—starting February 1, citing their opposition to his Greenland acquisition plans. The president warned that the levy would increase to 25% by June 1 if no deal is reached.
The EU’s countermeasures operate on two levels. The immediate option is the €93 billion retaliation package, which was prepared last year but suspended following a tentative US-EU trade agreement. Officials noted it could “automatically come back into force” if no resolution is achieved.
More strategically, EU leaders are considering activating the Anti-Coercion Instrument, adopted in 2023, which allows the bloc to respond to economic coercion by restricting market access, investment, and intellectual property rights. French President Emmanuel Macron reportedly urged its use, calling Trump’s threats “unacceptable.”
European Council President Antonio Costa has scheduled an extraordinary summit of EU leaders on January 22 to coordinate a unified response. Costa emphasized that the bloc is “ready to defend itself against any form of coercion,” as stated by reports.
Following an emergency meeting of ambassadors on Sunday, EU member states expressed strong solidarity with Denmark and Greenland but opted not to immediately deploy the bloc’s Anti-Coercion Instrument (ACI), nicknamed the “trade bazooka.” Sources indicated the EU is prepared to reinstate a suspended €93 billion ($108 billion) package of retaliatory tariffs on US goods if Trump proceeds with new duties.
The confrontation intensified after Trump announced a 10% tariff on imports from eight European NATO countries—Denmark, Norway, Sweden, France, Germany, the Netherlands, the UK, and Finland—starting February 1, citing their opposition to his Greenland acquisition plans. The president warned that the levy would increase to 25% by June 1 if no deal is reached.
The EU’s countermeasures operate on two levels. The immediate option is the €93 billion retaliation package, which was prepared last year but suspended following a tentative US-EU trade agreement. Officials noted it could “automatically come back into force” if no resolution is achieved.
More strategically, EU leaders are considering activating the Anti-Coercion Instrument, adopted in 2023, which allows the bloc to respond to economic coercion by restricting market access, investment, and intellectual property rights. French President Emmanuel Macron reportedly urged its use, calling Trump’s threats “unacceptable.”
European Council President Antonio Costa has scheduled an extraordinary summit of EU leaders on January 22 to coordinate a unified response. Costa emphasized that the bloc is “ready to defend itself against any form of coercion,” as stated by reports.
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