EU threatens trade 'bazooka' against Trump over Greenland tariffs
What's the story
The European Union (EU) is reportedly planning to freeze its trade agreement with the United States after President Donald Trump announced new tariffs on several European countries for opposing his move to acquire Greenland. The proposed tariffs include a 10% increase on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, Netherlands and Finland starting on February 1. The tariffs could increase to another 25% until an agreement is reached for the US to acquire Greenland.
Opposition voiced
EU officials express opposition to Trump's tariff plan
The announcement triggered an emergency meeting of European countries' representatives on Sunday. Manfred Weber, president of the European People's Party (EPP), said that the EU won't endorse a 15% tariff deal Trump struck last summer. He argued approval isn't possible given current tensions with the US. "...but given Donald Trump's threats regarding Greenland, approval is not possible at this stage," Weber wrote. UK Prime Minister Keir Starmer and French President Emmanuel Macron also opposed Trump's threats.
Retaliation hinted
Sweden's MEP hints at possible EU retaliation
Karin Karlsboro, a Swedish Member of the European Parliament and trade coordinator for the EU's Renew party, has hinted at possible retaliation. She said Europe may use its "anti-coercion instrument," also known as the trade "bazooka" policy. This could mean imposing restrictions on American companies operating in Europe, which further risks starting an all-out trade war with the US. "The EU must prepare to respond to President Trump's tariff attacks, including those targeting Sweden," Karlsboro told Politico.
Diplomatic efforts
European Commission President hopes for diplomatic resolution
The decision to implement the "bazooka" policy would be up to the European Commission, which Commission President Ursula von der Leyen has not yet raised. She is hoping to reach a diplomatic solution with the Trump administration. "Dialogue remains essential, and we are committed to building on the process begun already last week between the Kingdom of Denmark and the US," Leyen wrote. At the same time, she warned that Trump's proposed tariffs could lead to a "dangerous downward spiral."