Brussels is reportedly considering economic countermeasures if the US imposes new tariffs
The EU is considering new tariffs on US imports or restricting the access of American companies to the bloc’s market in response to President Donald Trump’s threat to annex Greenland, the Financial Times reported on Monday.
The US president has long sought control over Denmark’s overseas territory, citing concerns over the influence of Russia and China in the strategic region. On Saturday, he threatened to impose a new 10% tariff on a number of NATO members, including Denmark, starting in February, and increase it to 25% on June 1 if a deal is not reached.
According to the FT, European diplomats discussed over the weekend the reactivation of tariffs worth nearly $110 billion that were previously suspended until February 6. An EU diplomat told the newspaper that the bloc prefers a carrot-and-stick approach aimed at restraining Trump while avoiding a rupture of NATO.
“There are clear retaliation instruments at hand if this continues… [Trump’s] using pure mafioso methods,” a diplomat said, adding that the bloc wants to call for calm and give Trump “an opportunity to climb down the ladder.”
Bloomberg reported that the EU could also retaliate by attempting to sell the trillions of dollars it holds in US bonds and stocks. The outlet noted, however, that the majority of these assets are held by private funds outside the control of the government, and the sale would also hurt European investors.
Denmark has deployed troops to Greenland as part of the Arctic Endurance drill launched in response to Trump’s threats, while European politicians have warned that a US attack on a fellow NATO member would destroy the bloc.
Trump previously said he may have to acquire Greenland “the hard way,” and has refused to rule out the use of force.
NATO chief Mark Rutte, who spoke with Trump over the phone over the weekend, said member states are ready to address the president’s concerns over Greenland’s security.
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