EU Prepares Retaliation as Trump Tariff Threats Over Greenland Escalate Transatlantic Tensions

European Union ambassadors have reached broad agreement to intensify diplomatic efforts aimed at discouraging U.S. President Donald Trump from imposing new tariffs on European allies, while simultaneously preparing retaliatory measures should those duties proceed. The move comes after Trump vowed to introduce escalating tariffs starting February 1 on several EU member states — Denmark, Sweden, France, Germany, the Netherlands and Finland — as well as Britain and Norway, linking the measures to U.S. demands over Greenland.

EU leaders are expected to discuss response options at an emergency summit in Brussels this Thursday. Among the most likely measures is a previously prepared package of tariffs covering 93 billion euros worth of U.S. imports, which could automatically take effect on February 6 following a six-month suspension. Another option under consideration is the EU’s “Anti-Coercion Instrument,” a powerful but unused tool that could restrict U.S. access to public procurement, investments, financial services, and digital trade, where the United States currently enjoys a surplus.

EU officials indicated that the tariff package has broader initial support than the anti-coercion mechanism, which remains divisive among member states. European Council President Antonio Costa emphasized strong unity within the bloc, reaffirming support for Denmark and Greenland and warning against any form of economic coercion.

Denmark has stressed continued diplomacy, noting recent agreements with Greenland and the United States to establish a working group. Danish officials highlighted the importance of U.S. institutional checks and balances beyond the presidency. Dialogue is expected to continue at the World Economic Forum in Davos, where Trump is scheduled to deliver a keynote address.

The tariff threat has unsettled global markets, weakening the euro and sterling against the dollar and raising fears of renewed volatility. Several EU leaders, including France’s Emmanuel Macron, have pushed for a firm response, while others, such as Ireland and Italy, have urged caution and continued engagement.

The dispute also casts doubt on recent EU-U.S. and UK-U.S. trade deals, already criticized for their imbalance. European Parliament leaders have signaled a likely suspension of ratification efforts, underscoring the growing strain in transatlantic trade relations.