EU Weighs $108 Billion in Retaliatory Tariffs After Trump Threatens Duties Over Greenland

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EU Weighs $108 Billion in Retaliatory Tariffs After Trump Threatens Duties Over Greenland

The European Union is considering imposing retaliatory tariffs on up to €93 billion ($108 billion) worth of American goods after US President Donald Trump threatened new duties on imports from several European countries over their opposition to US control of Greenland, according to a report by the Financial Times.

EU ambassadors met in Brussels on Sunday evening to coordinate a joint response after Trump announced plans to impose 10% tariffs on imports from eight European countries beginning February 1, 2026, with a warning that the levy could rise to 25% from June if no agreement is reached. The targeted countries include Denmark, France, Germany, Sweden, Norway, Finland, the Netherlands and the United Kingdom.

The proposed US action is widely seen in Europe as an attempt to use trade pressure to force negotiations over Greenland, a semi-autonomous territory of Denmark that Trump has repeatedly described as strategically vital to US national security. Danish and Greenlandic leaders have firmly rejected any proposal to sell the territory, citing sovereignty and self-determination.

Among the options under discussion in Brussels is the activation of the EU’s anti-coercion instrument, a powerful trade defence mechanism designed to counter economic pressure from foreign governments. French President Emmanuel Macron said the bloc should be prepared to use all available tools to defend its interests. The EU had approved retaliatory tariffs on a similar scale last year but suspended them after reaching a trade understanding with Washington.

European lawmakers are also considering delaying the ratification of that agreement in response to Trump’s latest threat. The eight countries named in the US tariff warning issued a joint statement condemning the move, cautioning that it risks undermining transatlantic relations and triggering a broader escalation.

“We stand in full solidarity with the Kingdom of Denmark and the people of Greenland,” the statement said, warning of a “dangerous downward spiral” if tariffs are used against close allies.

EU foreign policy chief Kaja Kallas said internal divisions between Europe and the United States would only benefit rivals such as China and Russia, adding that Greenland’s security concerns should be addressed within NATO frameworks rather than through trade measures. NATO Secretary General Mark Rutte confirmed he had spoken with Trump and said efforts were continuing ahead of discussions at the World Economic Forum in Davos.

Several European leaders, including UK Prime Minister Keir Starmer and Italian Prime Minister Giorgia Meloni, have criticised the tariff plan, calling it counterproductive and harmful to allied unity. Analysts warn that if implemented, the measures could strain NATO cohesion and disrupt already fragile global trade flows.

For now, EU officials say their priority remains de-escalation, but preparations for countermeasures are under way should negotiations fail.

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