EU Prepares ‘Trade Bazooka’ in First-Ever Response to Trump’s Greenland Tariff Threat
The European Union (EU) is weighing the use of its most powerful trade retaliation tool after US President Donald Trump announced new tariffs on European countries backing Greenland, highlighting escalating transatlantic tensions.
If deployed, it would mark the first time the EU considers using its so-called “trade bazooka”, officially known as the Anti-Coercion Instrument (ACI), to counter economic pressure from a non-EU country.
Trump’s Tariff Threat
On Saturday, Trump said the US would impose a 10% tariff from February 1 on goods imported from Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the UK. He warned the duty could rise to 25% from June 1 if no agreement is reached over Greenland, insisting the territory is crucial for US security, and leaving the use of force on the table.
The threat comes after these European nations expressed support for Greenland, escalating the dispute between Washington and its allies.
EU’s Coordinated Response
The announcement prompted an emergency meeting in Brussels on Sunday, where EU leaders discussed countermeasures and the broader implications for US–EU relations.
French President Emmanuel Macron declared:
“It’s time to use the EU’s ‘trade bazooka’ for the first time.”
The ACI allows the EU to impose counter-tariffs, restrict US access to the European Single Market, block American companies from bidding on EU contracts, and even apply export controls or other restrictions. Officials have also flagged €93 billion in previously delayed retaliatory tariffs as a potential option if tensions escalate.
European diplomats called the situation unprecedented, noting that past disputes with the US had not prompted such decisive action.
Solidarity with Greenland
In a joint statement, eight European countries expressed full support for Greenland and Denmark, emphasizing shared Arctic security interests.
“We stand in full solidarity with the Kingdom of Denmark and the people of Greenland,” the statement said, warning that Trump’s tariff threats could trigger a dangerous downward spiral in transatlantic relations.
European Council President Antonio Costa vowed a firm defense of international law, while European Commission President Ursula von der Leyen warned that tariffs could undermine EU–US ties.
UK Prime Minister Keir Starmer also criticised Trump, calling tariffs on NATO allies over Greenland unjustified and a threat to Euro-Atlantic security.
The next steps will depend on negotiations with the US, but EU leaders have indicated they are ready to act quickly if Trump maintains or escalates his tariff threats.
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