EU Weighs Retaliation After Trump Links Tariffs to Greenland Deal

Overview

• President Trump announced 10% tariffs on goods from eight European allies starting 1 February, rising to 25% on 1 June absent an agreement to purchase Greenland.
• EU diplomats discussed reviving a suspended €93 billion tariff package on U.S. products that had been on hold until 6 February under an earlier accord.
• France urged use of the Anti-Coercion Instrument adopted in 2023, which could restrict investment and curb market access for U.S. companies in Europe.
• The eight targeted countries issued a joint statement affirming unity and warning that tariff threats erode transatlantic relations.
• European officials say potential countermeasures are being shaped to strengthen bargaining positions at the World Economic Forum in Davos, while analysts caution that escalation could carry significant economic and security risks for the bloc.