EU Considers Tariffs on €93 Billion of US Goods After Trump Threat

The European Union is considering imposing tariffs on €93 billion of US goods if US President Donald Trump follows through on his plan to levy new duties on European countries over Greenland, according to officials familiar with the discussions.

EU Prepares Retaliation but Seeks Diplomacy

Representatives from the EU’s 27 member states met on Sunday to begin outlining potential countermeasures, including reactivating previously approved tariffs that have been suspended. While the bloc is exploring options beyond trade penalties, officials said diplomatic efforts would be pursued first.

EU leaders are set to hold an emergency meeting in Brussels later this week to assess retaliation scenarios. European Council President Antonio Costa said the bloc’s nations were united in their support for Denmark and Greenland and ready “to defend ourselves against any form of coercion.”

Trump Links Tariffs to Greenland Dispute

Trump announced on Saturday that the US would impose a 10% tariff on goods from eight European countries starting Feb. 1, with the rate rising to 25% in June unless a deal is reached for the “purchase of Greenland.”

The threat followed announcements that the countries would take part in limited NATO military planning exercises in Greenland, an autonomous Danish territory. Trump has repeatedly argued that Greenland is critical to US national security.

European Leaders Reject Pressure

European leaders responded sharply to Trump’s remarks. British Prime Minister Keir Starmer described the tariff threat as “completely wrong,” while Swedish Prime Minister Ulf Kristersson said Sweden would not be “blackmailed.”

French President Emmanuel Macron called the move “unacceptable” and said he would seek activation of the EU’s strongest trade defense mechanism, known as the anti-coercion instrument.

Trade Deal with US Put on Hold

The EU’s most immediate response has been to freeze approval of a trade agreement reached with the US in July, which still requires ratification by the European Parliament.

The European People’s Party, the parliament’s largest political group, said it would join other parties in blocking the deal. Stefan Löfven, president of the Party of European Socialists, warned that Trump’s actions threatened decades of transatlantic cooperation and backed suspending the agreement.

What the Tariffs Could Target?

The suspended EU countermeasures cover €93 billion of US products, including Boeing aircraft, US-made vehicles and bourbon. If Trump proceeds with the tariffs in early February, the EU could swiftly reintroduce the measures.

The original trade deal, widely criticized in Europe as favoring Washington, saw the EU remove most tariffs on US goods while accepting a 15% duty on most exports to the US and 50% on steel and aluminum. The US later expanded the 50% tariff to hundreds of additional metal-containing products.

Economic Risks Loom for Europe

Trump’s tariff threat could disrupt the recent rally in European equities, which have outperformed US markets amid increased defense spending, lower interest rates and improving profit expectations.

According to economic estimates, a full 25% US tariff could slash affected countries’ exports to the US by up to 50%, with Germany, Sweden and Denmark facing the greatest exposure.