EU Weighs Countermeasures as Trump Threatens Tariffs Over Greenland Dispute

Berlin rejects US “blackmail” as EU weighs retaliatory tariffs and warns of damage to transatlantic ties over Greenland dispute.

Mon Jan 19 2026
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Key Points

  • European Union governments are considering countermeasures to the US tariff threats
  • Berlin emphasises Europe will not be “blackmailed” on the Greenland dispute
  • Emergency EU meetings and possible retaliatory tariffs are under discussion
  • Concerns raised about potential damage to transatlantic relations and NATO cooperation

ISLAMABAD: European Union leaders are preparing potential countermeasures in response to US President Donald Trump’s threats to impose tariffs on European allies over their opposition to his Greenland ambitions.

Officials in Berlin said that Europe will not accept coercive tactics from Washington.

The tensions arose after Trump announced plans to impose a 10 per cent tariff on goods from eight European countries starting February 1 unless the US is allowed to pursue a purchase of Greenland, an autonomous Danish territory, and address what he alleges are security shortcomings in the region.

Trump suggested tariffs could rise to 25 per cent by June if his conditions are not met.

German Finance Minister Lars Klingbeil stated that Berlin and its European partners will seek common solutions with Washington but “will not accept blackmail,” rejecting the tariff threats as undue pressure on close allies.

EU diplomats held emergency talks and plan to reconvene the European Council to coordinate a unified response.

According to AFP, France’s President Emmanuel Macron urged the EU to consider activating the anti-coercion instrument, a powerful trade defence mechanism sometimes called the “trade bazooka.” It would enable Brussels to impose counter-tariffs on US exports or restrict market access if punitive tariffs are enforced.

European leaders from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland issued statements condemning the tariff threats as a serious risk to transatlantic ties. They have warned that the threats “undermine relations and risk a dangerous downward spiral.”

Officials emphasised that Arctic security, including Greenland, should be addressed through NATO and diplomatic channels rather than economic coercion.

Sources indicate European capitals are reviewing a list of reciprocal tariffs valued at approximately €93 billion to deploy if Trump implements the levies. Still, Europe would prefer diplomatic engagement to de-escalate the dispute, they added.

European Commission President Ursula von der Leyen and European Council President Antonio Costa reaffirmed the EU’s commitment to unity, territorial integrity, and collective security, while stressing the importance of constructive dialogue with the US on shared global challenges.

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