Trump Greenland Tensions :The White House’s threats related to Greenland have triggered anger and intense diplomatic activity across Europe, with EU nations weighing possible countermeasures including retaliatory tariffs and the potential first use of the European Union’s anti-coercion mechanism.
US President Donald Trump, citing European opposition to American control over Greenland, announced on Saturday that the United States would impose a 10% import tariff on goods from eight European countries starting in February.
In a social media post from his golf club in West Palm Beach, Florida, Trump said Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland would be affected. He warned that the tariff could rise to 25% by June 1 if no agreement is reached for what he called the “complete and total purchase of Greenland” by the United States.
Trump Greenland Dispute Sparks Emergency EU Diplomacy
European leaders from Dublin to Helsinki swiftly condemned the announcement as economic coercion and sent representatives to Brussels on Sunday for an emergency summit.
If diplomacy fails, EU leaders have signaled a growing readiness to deploy the economic strength of the 27-nation bloc.
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“Our primary objective is engagement, not escalation,” European Commission spokesperson Olof Gill said on Monday. “But the EU has tools at its disposal and is prepared to respond should the threatened tariffs be imposed.”
EU–US Trade at Risk Amid Trump Greenland Tariff Threats
According to Eurostat, EU-US trade in goods and services is expected to total €1.7 trillion ($2 trillion) in 2024 — roughly €4.6 billion per day.
Trump, European Commission President Ursula von der Leyen, and other global leaders are traveling to Davos for the World Economic Forum, though no formal meetings between Trump and EU leaders are scheduled.
EU leaders are set to reconvene in Brussels on Thursday for an extraordinary summit focused on transatlantic relations.
European Council President Antonio Costa said EU leaders agree that tariffs would damage transatlantic ties and contradict the spirit of the EU-US trade framework.
EU Considers Retaliation Options Over Trump Greenland Move
The EU has three major economic tools available:
- New retaliatory tariffs
- Suspension of the EU-US trade agreement
- Activation of the Anti-Coercion Instrument, sometimes called the bloc’s “trade bazooka”
This mechanism allows the EU to impose sanctions on countries or entities that exert undue economic pressure.
Ireland’s Finance Minister Simon Harris urged restraint, warning against steps that could unravel hard-won trade agreements.
“This is a moment for calm heads,” Harris said, emphasizing the importance of preserving economic stability across the Atlantic.
Trade Diversification Gains Importance After Trump Greenland Threat
The Anti-Coercion Instrument was introduced in 2021 after China restricted trade with Lithuania over its ties with Taiwan.
In recent months, the EU has expanded trade partnerships, signing a major agreement with Mercosur nations, along with deals involving Indonesia and Japan, and is negotiating similar agreements with India and the UAE.
“These agreements show the value of responsible leadership in a turbulent global economy,” Gill said, adding that diversification has strengthened the EU’s trade resilience in the aftermath of renewed geopolitical uncertainty linked to the second Trump administration.
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