European governments are weighing retaliatory tariffs and tougher economic counter-measures after President Donald Trump threatened fresh U.S. export levies tied to negotiations over Greenland, widening an already sharp transatlantic dispute.
Trump said Saturday that eight European countries would face escalating tariffs unless Washington secures a deal to acquire Greenland, a mineral rich and semi autonomous territory governed by Denmark. Under the plan, duties would begin at 10 percent on Feb. 1 and rise to 25 percent by June 1 if no agreement is reached.
The proposed measures would target Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland. These tariffs would be added to existing U.S. duties, which currently stand at 10 percent for British exports and 15 percent for goods from the European Union.
In response, European diplomats held an emergency meeting in Brussels on Sunday to discuss possible counteraction. France is reportedly urging the bloc to consider deploying its most powerful trade defense tool, the Anti-Coercion Instrument. The mechanism would allow the EU to restrict U.S. firms’ access to the European market, bar them from public tenders and impose limits on trade and investment.
Although often described as a nuclear option, the instrument has never been used. Several European leaders said they still hope to pursue dialogue with Washington in the coming days to ease tensions over Greenland.
According to the Financial Times, the EU is also considering tariffs worth 93 billion euros, or $108 billion, on U.S. goods. Reuters reported that the European Parliament may suspend work on the EU U.S. trade agreement reached last July, delaying a planned vote later this month to reduce EU import duties on American products.
French Finance Minister Roland Lescure said Monday that the bloc “must be prepared” to activate its anti coercion mechanism. Germany, however, has traditionally taken a more cautious stance on aggressive trade retaliation.
“The key question to watch is whether the EU will try to keep the confrontation confined to such a more classic trade war, or whether calls for a harsher line prevail,” said Carsten Nickel of Teneo.
European leaders swiftly criticized Trump’s threat. British Prime Minister Keir Starmer said “applying tariffs on allies for pursuing the collective security of NATO allies is completely wrong,” while French President Emmanuel Macron called the move “unacceptable.”
Economists warn that talks could drag on for months. “For Greenland, the position for Europe is very clear: it’s not for sale,” said Mohit Kumar of Jefferies, adding that prolonged uncertainty is likely to weigh on European growth and markets.
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