U.S. News
Europe Considers Retaliation After Tariff Threats
Clear Facts
- President Trump threatened 25% tariffs on eight EU countries, the UK, and Norway over Denmark’s refusal to sell Greenland.
- The European Parliament’s largest bloc now opposes advancing the trade deal made last year between Trump and von der Leyen.
- French President Macron seeks to invoke the EU’s Anti-Coercion Instrument against the United States.
The ongoing dispute over Greenland has placed U.S.-EU trade talks in jeopardy. Key European leaders are now reconsidering their commitment to a previously negotiated deal.
The European People’s Party, the largest bloc in the European Parliament, holds 188 of 720 seats. Its president, Manfred Weber, stated that approval of the trade deal is not possible at this time due to recent threats from the United States.
“The EPP is in favour of the EU–U.S. trade deal, but given Donald Trump’s threats regarding Greenland, approval is not possible at this stage. The 0% tariffs on U.S. products must be put on hold,” said Weber.
The trade agreement in question would have eliminated tariffs on U.S. goods heading to Europe and limited U.S. tariffs on European products. Trump’s comments now risk freezing the deal and could lead EU officials to seek further economic responses.
French President Emmanuel Macron plans to ask the EU to use the Anti-Coercion Instrument, which is designed to counter foreign pressure with strong economic measures including restrictions on investment and intellectual property.
“He will be in contact all day with his European counterparts and will ask, in the name of France, the activation of the Anti-Coercion Instrument,” Macron’s office told Politico Europe on Sunday.
White House officials are standing by the administration’s position. National Economic Council Director Kevin Hassett voiced support for President Trump’s strategy regarding Greenland and the broader trade negotiations.
“I think right now with respect to Greenland, the president has a strong view that it’s a national security matter for the U.S. to have more control over Greenland, and I’m confident that in the end, he’s going to negotiate a deal that’s great for us and great for our partners,” said Hassett.
As trade tensions rise, both sides are weighing their options on how best to protect their national interests. The path forward depends on whether cooler heads can prevail on both sides of the Atlantic.
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