BRUSSELS — In response to escalating tensions regarding Greenland, the European Union is weighing significant trade measures, potentially imposing €93 billion in tariffs against the United States. This decision comes as a precautionary step to deter former President Donald Trump from pursuing control over the Arctic territory, as indicated by eight diplomatic sources.
During a critical three-hour meeting held in Brussels on Sunday, representatives from the EU’s 27 member states emphasized the necessity of preparing tangible countermeasures should upcoming negotiations with Washington fail to yield a prompt resolution. The urgency of these discussions was heightened following Trump’s threat to impose tariffs—initially set at 10 percent on February 1, escalating to 25 percent by June 1—on six EU nations, as well as the United Kingdom and Norway.
Diplomatic responses and potential actions
European Council President António Costa has indicated plans to convene a summit of EU leaders this week to address the situation. “It’s clear that a line has been drawn and enough is enough,” remarked one diplomat knowledgeable about the discussions. The current focus is on identifying which retaliatory options may be employed if the tariffs are enacted.
The proposed €93 billion in retaliatory measures would revive tariffs that the EU had previously suspended following the signing of a trade agreement with the U.S. in July. According to a second EU diplomat, implementing these tariffs could occur swiftly compared to other alternatives under consideration.
Alternative strategies and diplomatic engagements
Another potential avenue under discussion is the EU’s Anti-Coercion Instrument (ACI), designed to penalize nations that utilize market access as a means of geopolitical leverage. However, some EU members express hesitance regarding this more aggressive tactic. While the EU governments have yet to instruct the European Commission to activate this tool, French President Emmanuel Macron has advocated for its deployment, stressing the importance of a unified European response should the U.S. proceed with its tariff threats.
“There are many ways forward,” noted an EU diplomat, highlighting the range of diplomatic and economic strategies available. “Some can be spoken about publicly, others can’t.”
Despite the urgency of the situation, EU officials expressed a desire to deliberate carefully before taking any decisive actions. “There’s a feeling in Europe that we have to react, that is clear,” said one diplomat. “But also we shouldn’t feel pressure to end up in this tit-for-tat where they say something, we respond, then they respond … we may need two to three days to discuss this to figure out the next stage.”
In the coming week, European leaders are set to meet Trump during the World Economic Forum in Davos, Switzerland. The U.S. president is anticipated to appear on Wednesday, with the EU leaders expected to outline their strategic response at a summit likely scheduled for Thursday. Additionally, the European Parliament recently indicated its intent to halt the U.S.-EU trade agreement, which currently maintains U.S. tariffs on EU imports at 15 percent in exchange for the absence of EU levies on American exports.