European Union ambassadors achieved consensus on Sunday to intensify their efforts in persuading U.S. President Donald Trump to reconsider his proposed tariffs on European nations. Diplomats indicated that they are also readying retaliatory measures should these tariffs come into effect.
On Saturday, Trump revealed plans for escalating tariffs commencing February 1, targeting EU members such as Denmark, Sweden, France, Germany, the Netherlands, Finland, alongside Britain and Norway. This decision is reportedly tied to a controversial demand for the U.S. to be permitted to purchase Greenland, an initiative that EU leaders have denounced as coercive.
In response to the situation, EU leaders are scheduled to meet at an emergency summit in Brussels on Thursday to evaluate their available options. One potential countermeasure includes a proposed package of tariffs on $107.7 billion worth of U.S. imports, which might take effect on February 6 following a six-month suspension. Another strategy under consideration is the use of the “Anti-Coercion Instrument” (ACI), which holds the potential to limit U.S. access to public tenders, investments, or banking operations, particularly affecting areas where the U.S. enjoys a trade surplus with the EU.
As discussions progress, it appears that the tariff initiative is gaining more support compared to the ACI, which is reportedly less favored according to an EU source.
European Council President Antonio Costa underscored the EU’s solidarity in supporting Denmark and Greenland amid this dispute, adding that the complexities of the U.S. extend beyond its president, referencing the checks and balances that are a fundamental part of American governance.
The EU plans to leverage the upcoming World Economic Forum in Davos, where Trump is set to speak for the first time in six years, as a platform for constructive dialogue. An EU diplomat noted that all avenues remain open for discussing matters with U.S. officials.
The eight countries targeted by the tariffs have actively contributed troops to Greenland amidst escalating tensions concerning the territory’s future. In a collective statement, EU nations voiced apprehensions that the tariff threats could endanger transatlantic relations and potentially trigger a negative spiral in diplomatic interactions. They reaffirmed their commitment to engage in dialogue rooted in the principles of sovereignty and territorial rights.
Danish Prime Minister Mette Frederiksen expressed optimism regarding the strong support from Europe, asserting, “Europe will not be blackmailed.” However, the announcement of these tariff threats has unsettled global markets, leading to declines in both the euro and the pound against the dollar, indicating a potential for renewed market volatility.