Following an announcement by US President Donald Trump regarding potential tariffs on several EU states in connection with the dispute over Greenland, German businesses are calling for a unified European response. “Europe must not be blackmailed,” emphasized the German Engineering Federation (VDMA). “If the EU gives way here, the American president will only be encouraged to make further absurd demands and threaten additional tariffs,” explained VDMA President Bertram Kawlath.
While the threat of tariffs remains, the European Parliament should refrain from approving tariff reductions for US industrial goods. The European Commission should also examine the use of its instrument against coercive trade practices, which allows the EU to take countermeasures when economic pressure is used to force political decisions. Kawlath stressed: “Greenland is part of Europe and must remain so.”
Trump Announces Tariffs
The German Chamber of Industry and Commerce (DIHK) also called for EU solidarity. “Brussels can only respond to economic pressure against individual member states with a clear, common stance,” said DIHK Head of Foreign Trade Volker Treier. Given the threats, approval from the European Parliament for the planned reduction of EU tariffs on US goods appears unlikely at this time.
Treier also emphasized that all instruments of EU trade protection, including the Anti-Coercion Instrument (ACI), should now be examined, though their application should be a last resort.
In the dispute over Greenland, Trump announced higher tariffs against Denmark, Germany, Norway, Sweden, France, Great Britain, the Netherlands, and Finland. The tariffs would initially be ten percent starting February 1st, Trump wrote on his Truth Social platform. They are set to rise to 25 percent on June 1st if no agreement is reached regarding a US purchase of the Danish Arctic island. Trump has repeatedly claimed that resource-rich Greenland must come under US ownership for national security reasons, and has not ruled out military intervention.
A New Low for Transatlantic Trade Relations
Other business representatives had already reacted with dismay to the announcement. “The announcement of new US tariffs on certain European states is grotesque,” said the President of the Federation of German Industries (BGA), Dirk Jandura. “The US is punishing participants in a NATO mission, which is actually unthinkable.” This represents a new low in transatlantic trade relations.
The German Association of the Automotive Industry (VDA) also reacted with concern. “The announcements of possible new tariffs by the US President are a renewed and serious burden on transatlantic relations,” said VDA President Hildegard Müller. “The costs of these additional tariffs would be enormous for the German and European industry – in already challenging times.”
Frequently Asked Questions
What countries are facing potential tariffs from the US?
According to the source, the countries facing potential tariffs are Denmark, Germany, Norway, Sweden, France, Great Britain, the Netherlands, and Finland.
What is the Anti-Coercion Instrument (ACI)?
The ACI is an EU instrument that allows the EU to take countermeasures when economic pressure is used to force political decisions.
When are the potential tariffs scheduled to take effect?
The tariffs are initially scheduled to be ten percent starting February 1st, and potentially rise to 25 percent on June 1st if an agreement regarding the purchase of Greenland is not reached.
How will the EU respond to these threats remains to be seen, but a unified and firm stance appears to be gaining momentum among key economic stakeholders.
