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EU considers tariffs on US in response to Trump’s threat on Greenland
(MENAFN) The European Union is reportedly weighing new tariffs on US imports or restrictions on American companies’ access to its market as a response to President Donald Trump’s threats regarding Greenland, according to reports.
Trump has long sought to assert control over Denmark’s Arctic territory, citing concerns about Russian and Chinese influence in the strategically important region.
On Saturday, he threatened to impose a 10% tariff on several NATO member states, including Denmark, starting in February, with a potential increase to 25% on June 1 if an agreement is not reached.
European diplomats reportedly discussed over the weekend reactivating nearly $110 billion in previously suspended tariffs, set to come back into effect on February 6 if necessary. An EU diplomat described the approach as a “carrot-and-stick” strategy, aimed at restraining Trump without causing a rupture in NATO.
“There are clear retaliation instruments at hand if this continues... [Trump’s] using pure mafioso methods,” the diplomat said, adding that the EU also wants to encourage calm and provide Trump “an opportunity to climb down the ladder.”
The EU could also retaliate by selling some of its holdings in US bonds and stocks, although the majority of these assets are controlled by private funds, and such sales could negatively impact European investors, according to reports.
Denmark has deployed troops to Greenland for the Arctic Endurance exercise, launched in response to Trump’s threats, while European leaders have warned that any US attack on a NATO member would undermine the alliance.
Trump has previously stated he might have to acquire Greenland “the hard way” and has not ruled out using force. NATO Secretary-General Mark Rutte reportedly spoke with Trump over the weekend, emphasizing that member states are prepared to address US security concerns regarding Greenland.
Trump has long sought to assert control over Denmark’s Arctic territory, citing concerns about Russian and Chinese influence in the strategically important region.
On Saturday, he threatened to impose a 10% tariff on several NATO member states, including Denmark, starting in February, with a potential increase to 25% on June 1 if an agreement is not reached.
European diplomats reportedly discussed over the weekend reactivating nearly $110 billion in previously suspended tariffs, set to come back into effect on February 6 if necessary. An EU diplomat described the approach as a “carrot-and-stick” strategy, aimed at restraining Trump without causing a rupture in NATO.
“There are clear retaliation instruments at hand if this continues... [Trump’s] using pure mafioso methods,” the diplomat said, adding that the EU also wants to encourage calm and provide Trump “an opportunity to climb down the ladder.”
The EU could also retaliate by selling some of its holdings in US bonds and stocks, although the majority of these assets are controlled by private funds, and such sales could negatively impact European investors, according to reports.
Denmark has deployed troops to Greenland for the Arctic Endurance exercise, launched in response to Trump’s threats, while European leaders have warned that any US attack on a NATO member would undermine the alliance.
Trump has previously stated he might have to acquire Greenland “the hard way” and has not ruled out using force. NATO Secretary-General Mark Rutte reportedly spoke with Trump over the weekend, emphasizing that member states are prepared to address US security concerns regarding Greenland.
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