EU Prepares €93 Billion in Tariffs Against US in Response to Greenland-Related Trade Tensions

Brussels - EcoPulse24

In an unprecedented escalation of transatlantic trade tensions, the European Union is preparing to impose retaliatory tariffs worth €93 billion ($108 billion) on US exports. This move comes in response to President Donald Trump’s threats to levy tariffs on eight European countries over their stance on Greenland.

Trump’s Threats: 10% Now, 25% Later

On Saturday, January 18, 2026, President Trump announced a 10% tariff on exports from eight European countries - Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland - effective February 1, 2026. Trump warned, via Truth Social, that tariffs could rise to 25% by June 1, 2026, if no "full and comprehensive agreement on the purchase of Greenland" is reached, framing the issue as one of "the safety, security, and survival of our planet."

EU Response: €93 Billion Tariffs and Anti-Coercion Mechanism

According to the Financial Times, EU capitals are considering imposing tariffs on US imports totaling €93 billion or restricting US companies’ access to the single market. These tariffs were originally prepared in 2025 but suspended until February 6, 2026, to avoid a full-blown trade war. With US threats escalating, the EU is now readying to activate them.

The EU is also considering activating its Anti-Coercion Instrument for the first time since its adoption in June 2023. This tool allows the EU to respond to countries using economic measures to pressure any of its 27 member states. Potential measures include limiting US companies’ access to public procurement, blocking certain US investments, and imposing export licensing restrictions.

Emergency EU Summit Imminent

European Council President António Costa has called for an emergency summit in the coming days - likely Thursday in Brussels - to coordinate a unified EU response. On Sunday, EU ambassadors met in Brussels and agreed to intensify efforts to dissuade Trump from imposing tariffs, while preparing countermeasures if needed.

European Leaders React

France: “We Will Not Be Intimidated”

President Emmanuel Macron stated that tariff threats are “unacceptable” and have “no place in this context.” He urged activating the Anti-Coercion Instrument to restrict US companies' access to the single market.

UK: “Tariffs on Allies Are Wrong”

Prime Minister Keir Starmer condemned tariffs imposed on NATO allies. Eight affected countries issued a joint statement warning that tariff threats undermine transatlantic relations.

Germany: “We Will Respond Appropriately”

The German government pledged to coordinate with the EU to protect shared interests. Foreign Minister Johann Fadevol stressed the need for a European response and reaffirmed Denmark and Greenland’s sovereignty.

Sweden: “We Will Not Be Intimidated”

Prime Minister Ulf Kristersson said Sweden would defend itself and its allies, and is in talks with other EU countries and the UK for a joint response.

European Commission

Commission President Ursula von der Leyen stated that territorial integrity and sovereignty are fundamental, warning that tariffs would undermine transatlantic relations.

European Parliament: Trade Agreement Suspended

The main European Parliament blocs have suspended the US-EU Free Trade Agreement reached in July 2025, citing Trump’s Greenland-related threats.

Potential Economic Impact

On British Industries

The UK car industry, with exports to the US worth €11.5 billion, warned of potential job losses if tariffs are implemented.

On European Companies

The Financial Times notes that European countermeasures could also hurt EU businesses, especially if tariffs target US LNG, on which Germany heavily relies post-Russia.

On Transatlantic Relations

The crisis is described as the “most serious in decades” for transatlantic relations and could threaten NATO unity and European security.

Background: Why Greenland?

Greenland, an autonomous territory of Denmark, is strategically significant for its location, mineral resources, geopolitical competition, and US military bases.

Military Developments

The eight targeted European countries sent small forces to Greenland for a NATO-coordinated exercise, which Trump called “a very dangerous game.”

Danish and Greenlandic Position

Danish and Greenlandic officials reiterated that Greenland is not for sale, with thousands protesting US acquisition attempts. Denmark insists on respect for its territorial integrity.

Davos Meetings: Last Diplomatic Chance?

EU countermeasures are designed to strengthen its hand in key meetings with Trump at the World Economic Forum in Davos (January 20–24, 2026), aiming for a diplomatic solution to avert a trade war.

Crisis Timeline

Analysis: Trade War or Negotiating Tactic?

Analysts are divided: some see Trump’s move as a tough negotiating tactic for leverage on defense spending or trade terms; others warn the US may be serious about a radical shift in transatlantic relations. Trump previously used tariffs broadly, even against allies, for “trade justice.”

Russian Position

Kremlin spokesperson Dmitry Peskov called the situation contradictory, reiterating Greenland’s status as Danish territory and noting Greenland’s refusal to be “sold.”

US Position

Treasury Secretary Scott Besant argued that European “weakness” makes US control of Greenland necessary for global stability. Trump insists Greenland is key to US national security.

Outlook

Transatlantic relations stand at a crossroads. Either diplomacy at Davos and the upcoming EU summit will yield a face-saving resolution, or the world will witness the most serious trade war among allies in decades, with far-reaching security implications. Observers question whether the EU will activate its €93 billion tariffs or if the threat alone will force Trump to back down. The coming weeks will be critical for the future of economic and security ties between the world’s leading alliances.