 "Donald Trump warned he will impose new tariffs on eight European countries from February 1, saying they will stay in place until the US is allowed to buy Greenland (Reuters)")
A fresh trade confrontation is taking shape between the European Union and the United States . EU ambassadors agreed on Sunday to step up efforts to deter President Donald Trump from imposing new tariffs while readying countermeasures if the duties are enforced.
Trump said on Saturday he would introduce a new wave of tariffs from February 1. The measures would target Denmark, Sweden, France, Germany, the Netherlands, and Finland, as well as Britain and Norway. The tariffs would remain until the US is allowed to buy Greenland. Several major EU states described the move as blackmail.
Emergency summit and retaliation options
EU leaders are due to meet at an emergency summit in Brussels on Thursday. One option under discussion is a package of tariffs on 93 billion euros ($107.7 billion) of US imports. These measures could automatically take effect on February 6 after a six-month suspension.
Another option is the so-called Anti-Coercion Instrument, which has never been used. It could restrict access to public tenders, investments, or banking activity, or limit trade in services. This includes digital services, where the US has a surplus with the EU.
An EU source said the tariff package had broader backing as an initial response. Support for anti-coercion measures was described as “very mixed”.
Support for Denmark and Greenland
European Council President Antonio Costa said consultations showed strong backing for Denmark and Greenland . In a social media post, he said EU members were ready to defend themselves against any form of coercion.
Danish Foreign Minister Lars Lokke Rasmussen, speaking during a visit to Oslo, said Denmark would continue to prioritise diplomacy. He referred to an agreement reached on Wednesday by Denmark, Greenland, and the US to set up a working group.
“The US is also more than the US president. I’ve just been there. There are also checks and balances in American society,” he said.
Davos talks and diplomatic outreach
Dialogue is expected to be a key theme at the World Economic Forum in Davos. Trump is scheduled to deliver a keynote address on Wednesday, his first appearance at the event in six years.
“All options on the table, talks in Davos with the US and leaders gather after that,” one EU diplomat said, outlining the bloc’s approach.
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View AllThe eight countries targeted by the tariff threat are already subject to US duties of 10 per cent and 15 per cent. They have sent small numbers of military personnel to Greenland as tensions with Washington escalate over the future of the Arctic island.
In a joint statement issued on Sunday, they said tariff threats undermined transatlantic relations and risked a dangerous downward spiral. They added they were ready for dialogue based on sovereignty and territorial integrity.
Danish Prime Minister Mette Frederiksen said she was encouraged by support from across Europe, adding: “Europe will not be blackmailed”.
The tariff warning unsettled global markets. The euro and sterling fell against the dollar, with volatility expected to return.
A source close to French President Emmanuel Macron said he was pressing for use of the Anti-Coercion Instrument. Irish Prime Minister Micheal Martin said retaliation was certain but called it “a bit premature” to activate the unused tool.
Italian Prime Minister Giorgia Meloni described the tariff threat as “a mistake”. She said she had spoken to Trump a few hours earlier and had told him her view.
Britain and trade deal doubts
Asked how Britain would respond, Culture Secretary Lisa Nandy said allies needed to work with the United States to resolve the dispute.
“Our position on Greenland is non-negotiable … It is in our collective interest to work together and not to start a war of words,” she told Sky News on Sunday.
The tariff threat has also cast doubt on recent trade deals between the US and Britain in May and between the US and the EU in July. The agreements have faced criticism for being unbalanced, with US tariffs largely intact while partners remove import duties.
The European Parliament is now expected to suspend work on the EU-US trade deal. A vote on removing many EU import duties had been planned for January 26–27. Manfred Weber, leader of the European People’s Party, said late on Saturday that approval was not possible for now.
German lawmaker Juergen Hardt suggested what he described to Bild newspaper as a last resort. He said a boycott of the football World Cup, which the US is hosting this year, could be used “to bring President Trump to his senses on the Greenland issue”.