EU Mulls Using 'Trade Bazooka' Against US Over Trump's Greenland Threats

Leaders from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland issued a joint statement warning that Trump’s tariff threats could seriously damage relations across the Atlantic.

EU’s top diplomats held crisis discussions on Sunday and discussed imposing tariffs on €93 billion worth of US goods.

Source : ANI

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The European Union is considering retaliatory tariffs on American goods and even the use of its strongest economic enforcement tools after US President Donald Trump threatened to impose new import taxes on countries opposing his bid to annex Greenland. The move triggered sharp criticism from European leaders, with one senior official describing the threat as “blackmail”.

Leaders from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland issued a joint statement warning that Trump’s tariff threats could seriously damage relations across the Atlantic, The Guardian reported.

“Tariff threats undermine transatlantic relations and risk a dangerous downward spiral,” the statement said. “We are committed to upholding our sovereignty.”

Emergency Talks Among EU Diplomats

The EU’s top diplomats held crisis discussions on Sunday, during which they examined the possibility of reviving a previously suspended plan to impose tariffs on €93 billion worth of US goods. The proposal had been put on hold following a trade agreement reached with Trump last summer.

The measures under consideration would target US cars, industrial products, as well as food and drink exports, The Guardian reported, citing diplomatic sources.

Calls to Deploy EU’s ‘Big Bazooka’

French President Emmanuel Macron urged fellow leaders to consider activating the EU’s anti-coercion instrument (ACI), often referred to as the bloc’s “big bazooka”, if Washington followed through on the tariff threat, according to French media reports citing his team.

The anti-coercion law, which has never been used, allows the EU to impose sweeping punitive economic measures on countries attempting to force policy changes through economic pressure.

Emergency Summit Announced

Following the talks, European Council President António Costa announced that an emergency EU summit would likely be held on Thursday. He said the bloc had demonstrated its “readiness to defend ourselves against any form of coercion”.

Reaction from European capitals continued to mount. Italian Prime Minister Giorgia Meloni warned that Trump’s proposed tariffs would be a mistake, while Dutch foreign minister David van Weel labelled the US president’s threat against allies as “blackmail”.

No Consensus Yet On Retaliation

Despite growing pressure, the EU remains divided over immediate retaliation. An EU diplomat said there was currently “no question of deploying the ACI or any other trade instrument against the US”.

The €93 billion counter-tariff package remains suspended until February 6, and several officials stressed that dialogue with Washington remains the preferred option.

Trump’s warning followed the deployment of troops to Greenland over the past week by six EU nations, along with the UK and Norway. Accusing the countries of playing “a very dangerous game”, Trump said they would face 10% tariffs from February 1, rising to 25% from June 1.

In a post on Truth Social on Saturday, Trump said the tariffs would remain in place “until such time as a Deal is reached for the Complete and Total purchase of Greenland”.