Europe Warns U.S. Over Greenland Tariff Threats

European countries have warned the United States to stop using trade threats towards Greenland.

This problem began after Donald Trump announced that the US would impose additional tariffs on goods from some European countries. He mentioned that a 10% tariff could begin on February 1 and increase to 25% by June 1, if the deal is not finalized. 

The countries that will be affected by tariffs include Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, with the proposed tariffs adding to the current US duties, which are already 10% on UK exports and 15% on goods from the EU. 

On Sunday afternoon, European diplomats called an urgent meeting in Brussels to plan a response to Trump’s tariff escalation threats.  France urged the European Union to prepare its toughest economic response, the Anti-Coercion Instrument(ACI), against the United States.

Although ACI is seen as the EU’s powerful economic weapon, it is often called a last resort. If used, it would allow the EU to limit U.S. companies’ access to the EU market, block them from government contracts, impose trade restrictions on goods and services, and place controls on U.S. investment in Europe.

This tool is being dubbed as “bazooka” against Trump tariff threats, although it has never been used before. European leaders have said they still want to  talk with the US and try to fix the disagreements and ease the tension in Greenland through words. 

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The Financial Times reported that Europe is thinking of imposing $108 billion worth of tariffs on US goods, along with the possible use of ACI. 

Meanwhile, Reuters reported that the European Parliament may delay the work on the EU-US trade deal, which was agreed on last July. 

The assembly was planning to vote on removing several EU import duties on U.S. products on January 26–27, but the approval was postponed.