EU Unites to Counter US Tariff Threats Amid Greenland Crisis

New US tariff threats targeting eight countries involved in the Greenland crisis have significantly strained EU-US trade relations. The US threatens tariffs of up to 25%, compounding existing tariffs of 15% on most EU goods and up to 50% for steel and aluminum. These moves have sparked calls within the EU for a coordinated political and economic response.

German economic leaders criticized the US tariffs, with DIHK foreign trade chief Treier denouncing the political motivation behind these economic pressures. Treier urged the EU to act in unison and warned that the nearly 10% decline in German exports to the US last year could worsen. Machinery association VDMA's president emphasized the European Parliament should reject any tariff reductions for the US, cautioning that concessions would encourage further demands. Vice Chancellor Klingbeil condemned what he termed "blackmail" tactics by Trump and affirmed Germany's refusal to be provoked.

French President Emmanuel Macron advocated activating the EU’s Anti-Coercion Instrument (ACI), a tool designed to counteract economic coercion, which came into effect in 2023 but remains unused. The ACI permits extensive countermeasures, including investment restrictions and withdrawal of intellectual property protections, and requires a qualified majority of EU members to activate. Valérie Hayer, chair of the Renew faction in the European Parliament, supported preparing the ACI for deployment.

The European Parliament has warned it may block ratification of the EU-US trade agreement reached last summer if the US imposes the new tariffs. Siegfried Mureșan indicated a near-consensus among pro-European factions to suspend the agreement’s ratification. US Trade Representative meanwhile urged the EU to separate trade agreement negotiations from tariff disputes, pointing out that the EU has yet to fulfill its obligations under the agreement.

The situation is regarded as a critical test of EU unity, with calls for strong retaliatory measures, including digital taxes on US tech companies and targeted tariffs on President Trump’s business interests. EU representatives are convening in Brussels for a special session to coordinate their response.

This growing economic conflict amid the Greenland crisis highlights the EU's resolve to defend its interests collectively against coercive trade practices, signaling potential escalation in transatlantic trade tensions.