Europe prepares retaliation as Trump wields tariff threat in bid for Greenland
Eight European countries consider US$108 billion retaliation and ‘anti-coercion’ tools after Trump vows tariffs on Europe over Arctic island
European Union ambassadors reached broad agreement on Sunday to intensify efforts to dissuade US President Donald Trump from imposing tariffs on European allies, while also preparing retaliatory measures should the duties go ahead, EU diplomats said.
Trump vowed on Saturday to implement a wave of increasing tariffs from February 1 on EU members Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, until the US is allowed to buy Greenland, a step major EU states decried as blackmail.
EU leaders were set to discuss options at an emergency summit in Brussels on Thursday. One option is a package of tariffs on €93 billion (US$108 billion) of US imports that could automatically kick in on February 6 after a six-month suspension.
The other is the so far never used “Anti-Coercion Instrument” (ACI), which could limit access to public tenders, investments or banking activity or restrict trade in services, in which the US has a surplus with the bloc, including in digital services.
The tariff package appeared to command broader support as a first response than anti-coercion measures, where the picture was currently “very mixed”, according to an EU source.