EU Weighs Next Move as Trump Threatens Tariffs Over Greenland

Following President Donald Trump’s threat to impose tariffs on countries supporting Denmark’s territorial integrity, the European Union is bracing for a potential escalation that could push transatlantic relations toward a trade confrontation over Greenland. EU leaders are expected to hold emergency consultations in the coming days. Experts point out that the policy choice is complex. Retaliating with trade measures could trigger a direct trade conflict with the United States. Refraining from action, however, risks reinforcing Trump’s perception that the bloc is “weak, divided, and too scared” to resist his objective of securing control over Greenland, whether through negotiation or coercive pressure.

French President Emmanuel Macron is advocating a firm response. He has called for the EU to deploy its so-called “trade bazooka” for the first time. Officially termed the Anti-Coercion Instrument, the mechanism would enable Brussels to impose counter-tariffs, restrict access to the Single Market, and limit participation in EU public procurement by foreign companies. The instrument was designed to protect Europe from economic coercion by external actors. At the time of its creation, policymakers had China in mind, not the United States.

However, not all European leaders support Macron’s approach. Italian Prime Minister Giorgia Meloni, among those with the closest working relationship with Trump, has urged restraint. She described the tensions as a “problem of understanding and communication” following the deployment of European, including Danish, troops to Greenland. Her reference to something “lost in translation” suggests space for diplomacy rather than immediate escalation in what is becoming a sensitive EU-US standoff. 

EU ambassadors met behind closed doors in Brussels over the weekend in a deliberately low-profile format, underscoring uncertainty over the next steps. The trajectory remains unclear. Trump may moderate his position, or he may intensify it. What is evident is that any coordinated European response on an issue of this sensitivity will be gradual and difficult to consolidate.

Since Trump’s return to office, Europe has largely pursued a strategy of accommodation toward Washington. Some regard this as pragmatic, others as overly deferential. Now, the tone in Brussels is shifting. Increasingly, officials view Trump as moving beyond diplomatic pressure toward a broader challenge to the foundations of the transatlantic relationship.

Trump Threatens Tariffs to Secure Greenland

Last Friday, Trump threatened to impose tariffs on countries that refuse to support his plan to acquire Greenland, citing national security and the strategic importance of the Arctic territory. Speaking during a White House health roundtable, Trump emphasized that Greenland is essential to US security. 

“I could impose a tariff on countries if they do not accept the Greenland plan, because we need Greenland for national security reasons.” The president’s push comes amid growing Russian and Chinese activity in the Arctic, which the US sees as a challenge to its influence and regional stability.

Trump’s special envoy for Greenland, Jeff Landry, said he will visit the Danish territory in March to negotiate and expressed confidence that a deal could be reached. “Yes, I believe there is a deal that should be made, and it will happen once this process unfolds,” Landry told Fox News. 

Greenland Talks End Without Resolution, NATO Steps Up Presence

Last week, a high-level meeting between the United States, Denmark, and Greenland on the future of the Arctic territory ended without a clear resolution, highlighting ongoing disputes over sovereignty and security. 

The talks took place at the White House on Jan. 14, with US Vice President JD Vance, Secretary of State Marco Rubio, Danish Foreign Minister Lars Lokke Rasmussen, and Greenland’s Foreign Minister Vivian Motzfeldt participating. While no major breakthrough was reached, the parties agreed to continue discussions and established a working group to explore possible paths forward for Greenland.

Rasmussen described the meeting as “frank but constructive,” firmly rejecting US President Donald Trump’s repeated suggestions that Washington should assume control of the island, calling such proposals “totally unacceptable.” The working group, expected to meet in the coming weeks, will seek areas of compromise. Denmark and Greenland remain open to expanded US military activity but emphasize that certain boundaries cannot be crossed.

Amid heightened tensions, NATO has announced troop deployments to Greenland for “Operation Arctic Endurance,” with Germany, France, Sweden, and Norway participating. Motzfeldt emphasized the importance of strengthening defense in coordination with NATO allies. Rasmus Brun Pedersen, Professor, Aarhus University, suggested the US may frame the expanded NATO presence as a political win, though he cautioned it may still fall short of Washington’s demands.

EU Considers Suspending US Deal Amid Greenland Tensions

Due to this tension, the European Parliament is weighing whether to suspend the European Union’s implementation of its trade agreement with the United States. The European Parliament has been debating proposals to remove many of the EU’s import privileges for US products while retaining the zero tariffs on American lobster originally agreed with Trump in 2020. The Parliament had been scheduled to set its position in votes on Jan. 26 and 27, but Members of the European Parliament (MEPs) now suggest these should be postponed.

Key members of the interparliamentary Trade Committee met on Jan. 14 to discuss delaying the vote. No final decision was made, and the committee will reconvene next week. According to a parliamentary source, centrist and left-leaning groups favor postponement.

On the same day, 23 deputies urged EU Parliament President Roberta Metsola to halt work on the agreement while the US continues to threaten Greenland, an autonomous Danish territory. “If we approve a deal Trump sees as a personal victory while he makes claims on Greenland and refuses to rule out any means of achieving them, it will be perceived as rewarding him and his actions,” wrote Danish legislator Per Clausen.

Many have also criticized the trade deal as unbalanced, pointing out that the EU must remove most import tariffs while the US maintains a 15% tariff rate. However, freezing the agreement could provoke Trump, potentially triggering higher US tariffs. The Trump administration has ruled out concessions, including reductions on alcohol or steel tariffs, until the agreement is fully implemented.