EU to retaliate with €93 bn tariffs after Trump's threat over Greenland

The European Union (EU) is considering strong action against the US after President Donald Trump threatened fresh tariffs on European goods. Trump on Saturday said the US will impose a 10 per cent import tax from February on products from eight European countries for opposing US control over Greenland.

What action could the EU take?

According to the Financial Times, European countries may respond by imposing tariffs worth up to 93 billion euros on US goods.

 

The threat has led to an emergency meeting of European officials on Sunday. French President Emmanuel Macron has asked the EU to use its 'anti-coercion instrument,' often called the 'trade bazooka.' This tool allows the EU to block access to its market or restrict exports to the US, among other measures.

EU nations under Trump's radar

Trump said the tariffs would apply to Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. He added that the tariff rate would rise to 25 per cent from June 1 if no agreement is reached.

 

Several European leaders strongly criticised Trump’s warning. Macron said that Europe will not be influenced by threats or pressure, whether related to Ukraine, Greenland, or any other issue.

 

European Commission President Ursula von der Leyen and European Council President Antonio Costa said tariffs would harm US-EU relations and could lead to a dangerous trade conflict.

 

Denmark’s Foreign Minister Lars Løkke Rasmussen said Trump’s move was unexpected, especially after what he described as a positive meeting with senior US officials in Washington earlier this week.  ALSO READ | 'Completely wrong': UK PM slams Trump's tariff threats over Greenland

Davos meeting adds to tension

Trump is set to attend the World Economic Forum in Davos, Switzerland, on Tuesday, where he is likely to meet the European leaders. European countries are now preparing their strategy to strengthen their position in possible talks with the US.

Greenland crucial for national security: Trump

Trump has repeatedly said Greenland is vital for US national security. After the US military strike on Venezuela earlier this month, he repeated his calls for the US to take control of the island. He said Greenland is strategically important and claimed it is surrounded by Russian and Chinese ships. He also argued that Denmark cannot adequately protect Greenland and that the US needs control of the island for security reasons.

 

Danish Prime Minister Mette Frederiksen has rejected Trump’s comments, stating that the US has no right to take over Greenland and pointed out that Denmark already allows broad US military access under existing agreements.

Why is Greenland important for US?

Greenland is important because of its location and natural resources, including minerals, oil, and natural gas. It lies on the shortest route between Europe and North America, making it crucial for the US missile warning system.

 

The US also wants to increase its military presence in the region. It plans to install radars to monitor sea routes near Greenland, Iceland, and Britain, areas often used by Russian naval ships and nuclear submarines.