EU prepares to retaliate against Trump's Greenland threats
The European Union is preparing possible retaliation against the United States, including up to 93 billion euros ($101 billion) in tariffs or restrictions on U.S. companies operating in the bloc, amid escalating tensions with U.S. President Donald Trump, the Financial Times reported Jan. 18.
According to FT, which cited EU officials involved in the discussions, the measures are intended to give European leaders leverage ahead of expected meetings with Trump at the World Economic Forum in Davos.
The proposed tariff list was drawn up last year following Trump's initial round of global tariffs but was suspended to avoid a broader trade war. EU leaders discussed reactivating the measures on Jan. 18 as tensions with Washington intensified.
Officials also considered deploying the bloc's anti-coercion instrument, which would allow the EU to restrict U.S. companies' access to its internal market and limit American investment and service exports, including those by U.S. technology companies, FT reported.
France, which pushed for use of the anti-coercion instrument, is coordinating a joint response with Germany ahead of broader talks with other EU leaders on Jan. 19. Trump is expected to attend the World Economic Forum on Jan. 21-22, where he is slated to meet privately with European leaders to discuss Greenland.
Greenland is an autonomous territory of Denmark, a NATO ally, and has hosted a U.S. military base since the 1940s. Despite the longstanding relationship between Copenhagen and Washington, Trump has intensified his rhetoric about acquiring the island, repeatedly saying the U.S. would obtain Greenland "one way or the other."
Earlier this week, Trump escalated his threats, announcing plans to impose 10% tariffs on eight NATO allies — Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland — unless negotiations begin over Greenland. He said the tariffs would take effect Feb. 1 and rise to 25% on June 1.
Trump's remarks have unsettled European leaders, while Russian officials have welcomed the tariffs, portraying them as evidence of a weakening transatlantic alliance.
