Overview
- President Donald Trump set a 10% tariff on imports from eight European allies from February 1, rising to 25% on June 1 unless the United States secures a purchase of Greenland.
- European Commission President Ursula von der Leyen pledged an unflinching, proportional response at Davos and EU leaders will convene in Brussels this week for an emergency summit.
- French President Emmanuel Macron said the bloc should not hesitate to use its anti‑coercion instrument in response to the U.S. pressure campaign.
- EU options under discussion include activating the 2023 Anti‑Coercion Instrument and reactivating a suspended €93 billion tariff package, though ACI deployment could take months and carry uneven costs across members.
- U.S. Treasury Secretary Scott Bessent urged Europe not to retaliate and to stay calm as markets slid, with U.S. stock futures and European shares falling on rising geopolitical risk.