Donald Trump’s recent decision to impose tariffs on nations supporting Greenland has escalated transatlantic relations to a critical juncture, prompting European Union leaders to explore retaliatory measures that were previously deemed unimaginable.
For months, relations between Washington and European capitals have been fraught with tension as President Trump has wavered in his commitment to Ukraine, pressured EU allies into unfavorable trade agreements, and compelled NATO partners to significantly increase their defense expenditures. Despite these challenges, EU leaders have historically refrained from strong retaliatory actions, fearing that a U.S. withdrawal from NATO could result in greater consequences than any adverse trade arrangement.
Calls for a robust European response
However, the situation has intensified as Trump amplifies his claims over Greenland, leading to public protests in Nuuk and Copenhagen. This has ignited a growing chorus among European officials advocating for a more confrontational stance. The timing of Trump’s tariffs, coinciding with the EU’s recent trade agreement with Latin American nations, has only heightened the determination among EU leaders.
“I’m convinced that we must not give in,” said Jérémie Gallon, a former French diplomat and current senior managing director at McLarty Associates. “Resisting a new attempt at humiliation and vassalization is the only way Europe can finally assert itself as a geopolitical actor.”
Among the suggestions on the table is the activation of the EU’s Anti-Coercion Instrument — a powerful trade retaliation mechanism initially designed to counteract pressure from China. This tool would enable Europe to impose tariffs and restrict investments from nations perceived as aggressors.
Valérie Hayer, head of the centrist Renew Europe group in the European Parliament, emphasized the need for decisive action, stating, “The EU should be prepared to deploy targeted and proportionate countermeasures.” In a similar vein, French President Emmanuel Macron hinted at possible retaliation, asserting that Europeans would “respond in a united and coordinated manner should they [Trump’s tariffs] be confirmed.”
Potential consequences and internal divisions
The European Parliament is already gearing up to block the ratification of a recently negotiated EU-U.S. trade deal, with conservative party leader Manfred Weber indicating that approval is “not possible at this stage.” Enacting the Anti-Coercion Instrument would represent a significant escalation, as it was crafted for use against adversarial states, not the EU’s primary ally and NATO benefactor. The fact that this option is now under serious consideration underscores the gravity with which European leaders view Trump’s assertions about Greenland, an island with a long-standing association with Denmark.
Gallon further elaborated, “If Europe finally wants to regain the respect of its own citizens and from the rest of the world, then it has no other choice.” Nonetheless, some export-reliant countries within Europe may hesitate to instigate a full-blown trade conflict with the United States over Greenland, which has a population of just 57,000 and previously voted to leave the European Community in 1985.
EU Trade Commissioner Maroš Šefčovič remarked that approving the EU-U.S. trade deal amidst current tensions would be “very complicated,” yet he did not address the possibility of activating the Anti-Coercion Instrument. He emphasized that the recently signed Mercosur agreement should help mitigate the adverse effects of the new U.S. tariffs.
As European ambassadors prepare for an emergency meeting to discuss their response to Trump’s latest tariffs, there appears to be a gap between the sentiments in European capitals and the European Parliament, where politicians face pressure from constituents. An anonymous EU official noted, “It’s rare that the European Parliament and Council are fully aligned, especially on a matter like this.”
As European leaders assess their strategy in light of Trump’s Greenland threats, they are expected to balance their long-term economic and security priorities, such as preserving NATO while enhancing Europe’s defense autonomy. Recently, President Ursula von der Leyen unveiled a new security strategy for the EU, with plans for bolstering cybersecurity forthcoming this week.
Even the most optimistic observers of European-American relations acknowledge that the current landscape is fraught with unprecedented risks for the transatlantic alliance. “It’s a scary time,” the EU official concluded. “We need to keep calm and keep moving.”