European Union ambassadors have tentatively agreed to step up efforts to dissuade U.S. President Donald Trump from imposing tariffs on European allies, while also preparing possible retaliatory actions if the tariffs are enforced, according to EU diplomats. Trump recently announced plans to impose a 10 percent tariff on eight countries, including EU members Denmark, Sweden, France, Germany, the Netherlands, Finland, Britain, and Norway, for opposing U.S. control over Greenland.
EU leaders are set to explore options at an emergency summit in Brussels, with one proposal being a set of tariffs on U.S. imports totaling 93 billion euros ($150 billion Cdn) that could come into effect automatically on February 6 following a six-month suspension. Another option is the “Anti-Coercion Instrument” (ACI), which has never been utilized before and could potentially restrict access to public tenders, investments, banking activities, or trade in services where the U.S. holds a surplus with the EU, particularly in digital services.
The tariff proposal seems to have broader support initially as compared to the anti-coercion measures, which are currently receiving mixed opinions, as per an EU source. Trump’s tariff threat has raised concerns about the future of U.S. partnerships in Europe, especially as several European countries have deployed troops to Greenland for Arctic security training. This development occurred amid a protest outside the U.S. Consulate in Nuuk, Greenland.
In response to the tariff threats, the affected countries jointly stated that such actions jeopardize transatlantic relations and could lead to a negative downward spiral. Danish Prime Minister Mette Frederiksen emphasized that Europe will not succumb to blackmail. Trump’s intentions with the tariffs appear to be linked to leveraging talks with Denmark and other European nations regarding the status of Greenland, a semiautonomous territory of Denmark.
There are uncertainties surrounding the implementation of the tariffs due to the EU’s integrated economic zone for trading, as indicated by an anonymous European diplomat. EU foreign policy chief Kaja Kallas warned that the rift between the U.S. and Europe could benefit China and Russia while undermining shared prosperity. Prime Minister Mark Carney expressed concerns about the U.S.’s aggressive stance on purchasing Greenland and affirmed Canada’s support for Greenland’s sovereignty and territorial integrity.
The tariff announcement has not only elicited criticism from Trump’s allies in Europe but has also unified Britain’s political parties in denouncing the move. European leaders and officials are expected to address the escalating crisis in various forums, including an upcoming news conference in Oslo attended by the foreign ministers of Denmark and Norway.