Trump’s Greenland Tariff: European leaders have condemned a threat by United States President Donald Trump to impose a tariff of 10 percent from February 1 and 25 percent tariff from June 1 on countries that oppose his proposed takeover of Denmark’s Greenland. The European Union (EU) is now planning to deploy an anti-coercion instrument, escalating trans-Atlantic trade tensions.
On Saturday, Trump announced tariffs on goods imported from Germany, France, Denmark, Finland, Sweden, the United Kingdom, Norway and the Netherlands. The tariff announcement is likely to strain diplomatic ties between Europe and the United States. EU leaders would now hold an emergency meeting in Brussels to plan immediate counter measures and the future of US-EU relations.
Trump’s Greenland Tariff-EU’s Trade Bazooka
Emmanuel Macron, the President of France, remarked it’s finally time to bring out the EU trade bazooka for the first time. Macron was referring to the Anti-Coercion Instrument (ACI), a mechanism that designed for strengthening the ability of EU to defend its interests against economic bullying from non-EU countries.
The Anti-Coercion Instrument would allow the European Union to restrict the access of America to the European Single Market, impose counter-tariffs and prevent US companies for making bids on EU contracts. The ACI would send a clear, direct and loud message to Donald Trump that the EU fully intends to safeguard its political and economic interests.
The EU may also contemplate imposing previously announced retaliatory tariffs of 93 billion euros against the United States of America that were delayed earlier in July 2025 after US-EU reached a tentative trade truce.
A joint statement was issued by eight countries expressing solidarity with Denmark’s Greenland. The statement said all the 8 countries stand in full solidarity with the Kingdom of Denmark and the people of Greenland.
The EU would take a firm, solid stand against anyone against Greenland’s acquisition, said European Council President Antonio Costa.