Key Points
- The EU is threatening to impose retaliatory tariffs on $108 billion in U.S. goods.
- The move is in response to Trump’s threat to impose new tariffs over the dispute over Greenland.
- EU leaders are holding an emergency meeting to plan their response. Lawmakers are also moving to block a major trade deal with the U.S.
- The U.S. Treasury Secretary has dismissed the EU’s threats as a sign of weakness.
The European Union is preparing to hit back hard if President Donald Trump follows through on his threat to impose new tariffs on eight European nations over the Greenland dispute. The EU is in talks to impose its own tariffs on €93 billion ($108 billion) of U.S. goods and is also considering other countermeasures.
EU leaders are set to hold an emergency meeting in Brussels this week to hash out their response. “The bloc’s nations are united in support of Denmark and Greenland and are ready to defend ourselves against any form of coercion,” European Council President Antonio Costa said.
The firestorm started on Saturday when Trump announced a new 10% tariff on goods from eight European countries, which he said would rise to 25% if no deal is reached for the “purchase of Greenland.” The threat came after the countries announced they would hold small NATO military planning exercises in the semi-autonomous Danish territory.
European leaders were quick to condemn the move. UK Prime Minister Keir Starmer called it “completely wrong,” and French President Emmanuel Macron said the threat was “unacceptable.” Macron is also pushing for the EU to use its most powerful trade retaliation tool, the “anti-coercion instrument,” which has never been used before.
In a more immediate and concrete response, EU lawmakers are moving to halt the approval of a major trade deal with the U.S. The largest political group in the European Parliament has said it will join other parties to block ratification of the accord.
U.S. Treasury Secretary Scott Bessent has dismissed the EU’s threats, saying the president is just using “strategic leverage” to get what he wants. “The European leaders will come around,” he said.
