The European Union is considering imposing substantial tariffs—potentially reaching 93 billion euros—in response to threatened US tariffs linked to a dispute over Greenland. While EU ambassadors have not yet agreed to immediate retaliatory measures, Reuters reports that automatic tariffs of 93 billion euros, previously agreed upon in July, would be enacted should the US proceed with its threats.
According to a Reuters report citing diplomatic sources, the proposed EU tariffs would target US products including bourbon, aircraft parts, soybeans, and poultry. These plans were previously reported by Spiegel and the Financial Times.
EU Stands Firm Against US Tariffs
The EU had previously suspended the implementation of these tariffs after reaching a trade agreement with the US that provided tariff-free access for US goods and a 15-percent tariff on EU goods entering the US. However, Manfred Weber, head of the European People’s Party (EVP), stated that the European Parliament has indefinitely postponed the ratification of this agreement.
“Trump will not get duty-free access for his American products into the European internal market,” Weber told ZDF. “My fellow faction leaders and I decided that last night – a first clear signal.” He added, “Donald Trump must prove to us that we can work with him on a rules-based system, otherwise the entire ratification makes no sense.”
EU Commission President Ursula von der Leyen affirmed that the EU will “always protect our strategic economic and security interests.” She stated she discussed the situation surrounding Greenland with NATO Secretary-General Mark Rutte, British Prime Minister Keir Starmer, French President Emmanuel Macron, German Chancellor Friedrich Merz, and Italian Prime Minister Giorgia Meloni, and that they would approach the situation with “steadfastness and determination.”
In addition to the substantial tariff package, EU member states are also considering utilizing the previously unused Anti-Coercion Instrument, which could restrict access to public procurement, investment, or banking services, or limit trade in services where the US holds a surplus with the EU. France reportedly favors this approach.
EU Summit on Tariffs Likely on Thursday
The current debate was triggered by US President Donald Trump’s announcement of a ten-percent additional tariff on goods from select EU countries, set to take effect February 1st, if the EU opposes a US purchase of Greenland. This tariff is slated to increase to 25 percent in June. Germany and other European nations responded with protest and announced resistance.
German Foreign Minister Johann Wadephul stated that a European response would be “self-evident” should the US take further action. However, the minister dismissed concerns about the current trade dispute impacting the military cohesion of NATO, stating, “The United States also needs Europe. Together we are strong.”
EU Council President António Costa announced a special EU Council summit “in the coming days,” stating the EU is united in defending itself “against any form of coercion” and supports the sovereignty of Denmark and Greenland. He also expressed a continued desire for constructive cooperation with the US. Reuters and dpa report, citing insiders, that the summit is likely to take place on Thursday, as an in-person meeting.
Trump Leaves Military Options Open
US President Trump reiterated his desire to acquire Greenland, which belongs to Denmark, claiming security concerns related to alleged threats from China and Russia in the region justify the move. He also referenced his planned “Golden Dome” missile defense system as justification. He has not ruled out the possibility of military action against NATO partner Denmark.
Trump also criticized the deployment of soldiers from several EU and NATO nations to Greenland for a reconnaissance mission at Denmark’s invitation, including troops from Germany and France. In response, he announced additional tariffs against these eight European countries.
Greenland is an autonomous territory of Denmark. A recent poll indicates that 85 percent of Greenlanders oppose US ownership of the island. Thousands demonstrated against Trump’s annexation plans in both Denmark and Greenland over the weekend.
Follow the latest developments in the conflict over US claims to Greenland in our liveblog.
Frequently Asked Questions
What prompted the EU to consider these tariffs?
The EU is considering tariffs in response to a threat from US President Donald Trump to impose additional tariffs on goods from certain EU countries if the EU opposes a potential US purchase of Greenland.
What products could be subject to EU tariffs?
According to a Reuters report, the EU tariffs could be applied to US products including bourbon, aircraft parts, soybeans, and poultry.
What is the Anti-Coercion Instrument?
The Anti-Coercion Instrument is a previously unused EU tool that could restrict access to public procurement, investment, or banking services, or limit trade in services where the US has a trade surplus with the EU.
How will this situation impact the relationship between the US and Europe going forward?
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