EU weighs 93 billion euro retaliation as Trump links tariffs to Greenland purchase

EU officials are weighing a massive 93 billion euro trade retaliation against the US following President Donald Trump’s announcement of sweeping new tariffs linked to his bid to acquire Greenland, according to a report by the Financial Times citing sources familiar with the matter.

On Saturday, Trump declared that a 10% tariff would be imposed on products imported from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and the UK, effective this February.

The US president further specified that this rate would escalate to 25% and remain in place until the US successfully purchases Greenland.

These tariff threats emerge amidst escalating political and security tensions over Greenland and the broader Arctic region. Due to its strategic location between North America and Europe, Greenland is of critical importance for missile detection, space surveillance, and early warning systems. The island already hosts significant US military infrastructure under long-standing defense agreements with Denmark.

European officials have warned that attempts to alter Greenland’s political status constitute an interference in Danish sovereignty and risk undermining NATO’s principle of collective defense.

Greenland’s defense must be conducted through NATO

This week, Greenland’s governing coalition reaffirmed the island’s defensive alignment within NATO, announcing plans to deepen coordination with Denmark to ensure all future defense arrangements remain within the alliance’s framework.

An official statement emphasized that the island is an integral part of the Kingdom of Denmark, stating, “Greenland’s defense must therefore be conducted through NATO.” The statement also reminded all allies, including the US, of their shared responsibility for the island’s security.

The EU’s “trade bazooka” option

EU officials indicated that a roster of retaliatory measures had been drafted as early as 2025; however, implementation was deferred until February 6 in an attempt to avoid a full-scale trade conflict.

The administration in Brussels is now discussing limiting US companies’ access to the European market through the “Anti-Coercion Instrument” (ACI), a mechanism designed to counter economic pressure from third countries.

During a meeting of EU ambassadors on Sunday, several member states reportedly called for the first-ever activation of this tool, which has been described as a “trade bazooka.”

Diplomatic positioning ahead of Davos

Sources suggest that the measures currently under development are intended to bolster Europe’s leverage ahead of meetings between European leaders and Trump at the World Economic Forum (WEF) in Davos, scheduled for January 19-21.

Simultaneously, diplomatic tensions have spilled over into the streets. Across Denmark, thousands of people staged demonstrations to protest Trump’s attempt to purchase Greenland.

Activists characterized the rallies as a defense of democracy and the island’s right to self-determination. Similar protests are also planned for the city of Nuuk.

Donald Trump maintains that Greenland must come under US control, citing its strategic importance to US national security.

In response, authorities in both Greenland and Denmark have warned Washington against any attempts at land acquisition, emphasizing the necessity of respecting mutual sovereignty and territorial integrity.

Greenland, which was a Danish colony until 1953, has enjoyed broad autonomy in internal affairs since 2009, while remaining dependent on Denmark for defense and foreign policy matters.