European leaders pledged a united response after US President Donald Trump threatened fresh tariffs until Denmark agrees to sell Greenland in an unprecedented escalation that could trigger a new trade war and break the transatlantic alliance.
From Ursula von der Leyen to French President Emmanuel Macron and German Chancellor Friedrich Merz, EU leaders vowed to stay “united, coordinated and committed” to upholding Europe’s sovereignty after the Trump administration said additional tariffs of 10% would apply on eight European countries starting February 1.
In a social media post on Saturday, Trump said all products from Denmark, Sweden, Norway, France, Germany, the Netherlands, Finland and the United Kingdom would be subject to an additional 10% tariff, which could be increased to 25% by June, to be paid until “a deal is reached for the complete and total purchase of Greenland.”
Greenland is a semi-autononomous territory belonging to Denmark. Earlier this week, the same group of countries said they would deploy a joint mission to the island, which has prompted the ire and retaliation of the White House in the form of new tariffs.
Last summer, the EU and the US signed a deal which tripled duties on European products to 15% while lowering tariffs to zero on US industrial goods. At the time, Brussels indicated the deal, which saw major EU concessions in favour of Washington, was the price to pay for US engagement in Ukraine and global stability.
While it was not immediately clear how the tariffs announced Saturday would be stacked up, the threat of additional duties risks triggering a new trade war between the two.
EU Council president António Costa said he would coordinate leaders in their response.
Ursula von der Leyen joined echoed his remarks saying “tariffs would undermine transatlantic relations and risk a dangerous downward spiral. Europe will remain united, coordinated and committed to upholding its sovereignty.”
While the Commission negotiates matters related to trade on behalf of the 27 and has exclusive competences over commerce, the White House could go after individual countries by targeting specific products and industries related to those countries.
European leaders condemn ‘unacceptable’ threats
The Trump administration has upped the bellicose rhetoric around Greenland in recent weeks saying the territory will have to be transferred to the US for national security matters “the easy way or the hard way” and rejected suggestions that Denmark, assisted by its European allies, is capable of taking care of the territory and Arctic security.
Earlier this week, Danish officials held talks with American officials, pushing back against “a narrative” that Russian and Chinese warships are allowed to circle freely in Greenland. Danish intelligence says no Chinese ship has been spotted in a decade.
In a show of support for Denmark, a group of European countries joined an exploration mission to Greenland. They all now face tariffs from the Trump administration as a result.
Danish foreign minister Lars Løkke Rasmussen said he was “surprised” by the White House reaction and suggested that the purpose of the European mission is to “enhance security in the Arctic” as suggested by the White House.
Meanwhile, French President Emmanuel said the EU would not be intiminated.
“No intimidation or threat will influence us – whether in Ukraine, in Greenland or elsewhere in the world,” Macron wrote in a social media post on X.
“Tariff threats are unacceptable and have no place in this context. Europeans will respond in a united and coordinated manner if they are confirmed.”
Swedish Prime Minister Ulf Kristersson echoed his remarks, saying “we will not allow ourselves to be blackmailed” in one of the most severe statements to date.
Parliament calls for EU to bring out the big trade bazooka
The latest spat calls into question the European strategy of appeasement when it comes to Trump and has revitalised calls to deploy its trade “bazooka” known as the anti-coercion instrument, which would allow the EU to severely retaliate against the US.
The tool adopted in 2023 to combat political blackmail through trade allows the EU to restrict third countries from participating in public procurement tenders, limit trade licenses and shut off access to the European single market.
Bernd Lange, a German parliamentarian and chair of the European Parliament’s trade committee, said business cannot go on as usual as “President Trump is using trade as an instrument of political coercion” on European allies.
He called to suspend the implementation of the reduction of tariffs on US goods and said the EU must now activate the anti-coercion instrument. “A new line has been crossed.”
Meanwhile, Manfred Webber, the powerful chief of the conservative European People’s Party, urged the EU Parliament to freeze the EU-US deal.
“Given Donald Trump’s threats regarding Greenland, approval is not possible at this stage. The zero tariffs on US products must now be put on holds,” he said Saturday.