European Union leaders were thrown into emergency consultations yesterday following U.S. President Donald Trump’s announcement of a proposed 10 per cent tariff on imports from several EU countries unless they comply with Washington’s push to acquire Greenland.
The development sparked outrage across Europe, with key EU member states condemning the tariff threat as political blackmail. France, in particular, floated the idea of deploying a range of unprecedented economic countermeasures in response.
Trump, speaking on Saturday, said the tariffs would target Denmark, Sweden, France, Germany, the Netherlands and Finland, as well as Britain and Norway, and would remain in place until the United States is granted permission to purchase Greenland.
In reaction, Cyprus, which currently holds the EU’s rotating six-month presidency, convened an emergency meeting of ambassadors in Brussels at 5 p.m. (1600 GMT), as diplomatic engagements intensified across the bloc.
Sources close to French President Emmanuel Macron revealed that he is advocating for the activation of the EU’s Anti-Coercion Instrument—often referred to as the “bazooka.” The measure would allow the bloc to restrict access to public procurement, investments, banking operations, or services trade, including digital services where the U.S. enjoys a surplus.
However, despite the escalating rhetoric, EU officials indicated that the anti-coercion mechanism would not be immediately deployed. Instead, member states agreed to prioritise diplomatic engagement with Washington while monitoring developments.
According to sources familiar with the discussions, EU countries deliberately refrained from triggering the trade “bazooka” during the emergency Brussels meeting, opting instead to pursue dialogue and de-escalation.
Nevertheless, the bloc is keeping tougher options on the table. Officials said the EU could reactivate a previously suspended €93 billion retaliation package if Trump proceeds with his threat to impose additional tariffs on eight European countries from February 1.
A final decision on whether to reinstate the counter-tariffs—first prepared last year amid uncertainty over EU–U.S. trade negotiations—will be taken after that deadline. The package includes retaliatory duties of up to 30 per cent on a wide range of U.S. exports, including automobiles and poultry.
The eight affected European nations, which are already facing U.S. tariffs of between 10 and 15 per cent, have each deployed limited numbers of military personnel to Greenland as tensions with Washington over the future of the Danish territory intensify, according to Reuters.
In a joint statement issued on Sunday, the eight countries warned that tariff threats risk damaging transatlantic relations and could trigger a dangerous cycle of escalation. They clarified that Denmark’s military exercises were aimed at strengthening Arctic security and posed no threat, stressing their willingness to engage in dialogue grounded in respect for sovereignty and territorial integrity.
Danish Prime Minister Mette Frederiksen welcomed the unified European response, stating that “Europe will not be blackmailed,” a sentiment echoed by Germany’s finance minister and Sweden’s prime minister.
Dutch Foreign Minister David van Weel was more blunt, describing Trump’s approach as “blackmail” during an appearance on Dutch television.
Meanwhile, European Council President António Costa has called an extraordinary summit of EU leaders in the coming days, with sources indicating the meeting is likely to hold on Thursday, January 22.
Support for Macron’s hardline stance also came from senior European lawmakers, including Bernd Lange, who chairs the European Parliament’s trade committee, and Valerie Hayer, leader of the centrist Renew Europe group. Germany’s engineering association also backed calls for stronger EU action.
Irish Prime Minister Micheál Martin cautioned, however, that while EU retaliation remained inevitable if tariffs were imposed, it was still premature to activate the anti-coercion instrument.
Italian Prime Minister Giorgia Meloni, who maintains closer ties with Trump than many EU leaders, described the tariff threat as a “mistake.” She disclosed that she had spoken with the U.S. president hours earlier and believed he was receptive to her concerns. Italy has not deployed troops to Greenland.
In Britain, Culture Secretary Lisa Nandy said any response to new tariffs should prioritise cooperation with the United States, stressing that London’s position on Greenland was non-negotiable and warning against an escalation of rhetoric.
The tariff threats have also cast doubt on recent trade agreements the U.S. reached with Britain in May and the EU in July. Both deals have already faced criticism for being uneven, with Washington retaining broad tariffs while its partners agreed to remove import duties.
As a result, the European Parliament is now expected to suspend further consideration of the EU–U.S. trade agreement. Lawmakers had been due to vote on reducing several EU import duties later this month, but Manfred Weber, leader of the European People’s Party, said approval was no longer feasible under the circumstances.
German lawmaker Juergen Hardt also suggested that more drastic steps—including a potential boycott—could be considered as a last resort to pressure the U.S. president into reconsidering his stance on Greenland.