The European Union is considering halting its trade agreement with the United States, with member states now warning of possible aggressive trade measures against the U.S. following President Trump’s proposal to levy new tariffs on imports tied to Greenland.
European officials expressed confusion after Trump declared a 10% tariff on goods from several countries including Denmark, Norway, and others, threatening to increase this to 25% until a deal is finalized granting the U.S. control over Greenland.
In reaction, Manfred Weber, who heads the European People’s Party (EPP), announced that the EU wouldn’t endorse the previously signed 15% tariff agreement from last summer due to the current discord with the U.S. He stated that, due to the situation, passing the deal was unfeasible.
Weber emphasized, “The EPP supports the EU-U.S. trade agreement, but the threats about Greenland from Trump make approval impractical at this time.” He also mentioned that zero tariffs on U.S. products should be put on hold.
This stance seems to resonate across the EU, as British Prime Minister Keir Starmer termed Trump’s threats as “completely wrong,” while French President Emmanuel Macron called them “unacceptable.”
Karin Carlsboro, a Swedish lawmaker and trade coordinator for the EU’s Renew party, noted a lack of sufficient congressional support to get the deal Trump had touted last year over the line.
She suggested that Europe now has grounds to consider introducing “anti-coercion measures,” informally recognized as trade “bazooka” policies, aimed at countering countries that attempt to exert pressure on the EU.
Carlsboro pointed out, “The EU must ready itself to tackle Trump’s tariff actions, especially those aimed at Sweden.” She further warned that if the intimidation persists, retaliatory tariffs and the enactment of these ‘bazookas’ might be unavoidable.
This policy could allow the EU to impose restrictions on American businesses and services within Europe, potentially escalating into a full trade conflict with the U.S.
Ultimately, the European Commission has the authority to activate the bazooka policy, although President Ursula von der Leyen has yet to discuss this option publicly, aiming for diplomatic dialogue with the Trump administration.
Finally, Ryen expressed that dialogue is crucial, emphasizing a commitment to continue the conversation that began last week involving Denmark and the U.S.
He cautioned that Trump’s tariff plans could “push us into a perilous downward spiral.”
On Saturday, Trump announced new tariffs specifically targeting Denmark and its NATO allies, coinciding with U.S. troop deployments in Greenland, signaling European solidarity.
He warned that these tariff increases would take effect February 1, along with heightened import duties unless Denmark agreed to an all-encompassing sale of Greenland.
