President Trump imposes tariffs on 8 European countries over Greenland
President Donald Trump has vowed to impose a series of tariffs on European allies until the United States is allowed to buy Greenland, intensifying the spat over the future of Denmark’s vast Arctic island.
Ambassadors from the European Union reached a general agreement on January 18 to step up efforts to deter President Donald Trump from imposing tariffs on European allies and prepare for retaliation if the US president follows through on his threats.
The review comes after President Trump announced that eight NATO countries would impose a 10% tariff on all goods sent to the United States from February 1 until the United States is allowed to buy Greenland, a move that major EU countries have denounced as blackmail. President Trump said tariffs would rise to 25% on June 1 if no deal is reached to buy the area.
French President Emmanuel Macron has used the European Union’s anti-coercion measures against the United States as part of a number of interactions with European leaders, diplomats told USA TODAY. The diplomat added that President Macron had reaffirmed to his partners the importance of a decisive and coordinated European response.
Irish Prime Minister Michael Martin said he had no doubt the EU would retaliate, but said it was “a bit premature” to use this measure.
The EU had said it would begin importing $107 billion worth of goods from the United States in May 2025 in response to President Trump’s sweeping tariff announcements, but suspended imports for six months after the president and ambassadors reached an agreement. According to Euronews, the proposed tariffs target industries centered on Republican-leaning states, including bourbon, aircraft parts, soybeans and poultry.
According to the Financial Times, the EU has not ratified the deal, and lawmakers in Brussels suggested that new threats to Greenland would override EU recognition.
Reuters, citing EU sources, said the tariffs appear to have broad support as an initial response compared to other anti-coercion measures, which currently have “a very complex situation”.
Eight NATO members, including Denmark, said in a joint statement that President Trump’s latest tariffs are “dangerous” to the transatlantic relationship. “The threat of tariffs risks damaging transatlantic relations and sending us into a dangerous downward spiral,” the countries said.
Here’s what you need to know about the European Union’s ‘trade bazooka’.
What is a “Trade Bazooka”?
The European Union’s anti-coercion measures, also known as “trade bazookas”, were adopted in 2023 to prevent and eliminate “situations of economic coercion”, according to the text of the regulation.
“It is aimed, inter alia, at deterring economic coercion by the EU or Member States and enabling the EU to counter economic coercion through EU countermeasures as a last resort,” the regulation says.
The measure was designed to prevent “bullying” from China, Politico Europe reported. However, Euronews said it was aimed at countering China and the United States, which use tariffs and natural resources to promote their national interests.
The agreement allows the EU to restrict or suspend imports of goods and services into its own market, and impose limits on foreign investment, intellectual property rights, and more.
The European Commission’s Q&A page on the document states that any action against a country must be “proportionate to the harm caused”.
“The range of possible measures is designed to be wide enough to enable the selection and design of effective and efficient responses to individual cases of economic coercion, with minimal or no impact on the EU economy,” the European Commission said.
How long does it take to deploy a “Trade Bazooka”?
According to the text of the regulation, once a country is accused of coercion, the European Commission has up to four months to investigate the allegation. After the investigation, a majority of EU member states must agree to start the investigation.
Once this measure is activated, the EU will negotiate with the accused country. If these negotiations fail, retaliatory measures may be taken.
According to AFP, the device has not been used since its introduction.
Why are anti-coercion measures considered “bazookas”?
The use of anti-coercive measures could seriously damage trade relations between Europe and the US and was considered a “nuclear option” to counter President Trump’s tariffs, Euronews said.
Trade between the US and the EU will reach nearly $2 trillion in 2024, representing nearly 30% of global trade and 43% of global GDP, according to EU Council data.
“The European Union and the United States have the largest bilateral trade and investment relationship and the most integrated economic relationship in the world,” the Council wrote.
According to Agence France-Presse, the European Union is made up of 27 countries with a total population of 450 million people.
Contributed by: Reuters
