A protester takes part in a demonstration in support of Greenland on January 17, 2026 in Copenhagen, Denmark.
Tom Little | Reuters
European nations are considering retaliatory tariffs and broader punitive economic countermeasures against the US after President Donald Trump threatened to impose new export tariffs, deepening a row over Greenland.
Trump announced this on Saturday Eight European countries face rising tariffsStarting at 10% on February 1, rising to 25% on June 1, unless an agreement is reached Allowed Washington to take GreenlandA mineral-rich island that is a semi-autonomous territory of Denmark.
Recommended rates are for Denmark, Norway, Sweden, France, Germany, UK, Netherlands and Finland. The duty will come on top of existing export tariffs to the US, which are currently 10% for the UK and 15% for the EU.
Regional diplomats held an emergency meeting in Brussels on Sunday afternoon to discuss responses to Trump’s threat of higher tariffs, with France calling on the EU to use its strongest economic countermeasure against the US, known as the Anti-Coercion Instrument (ACI).
Protesters wave Greenlandic flags during a demonstration chanting “Hands off Greenland” and “Greenland for Greenland” outside the US Embassy in Copenhagen, Denmark on January 17, 2026.
Nurphoto Nurphoto Getty Images
In terms of economic countermeasures, it is seen as the nuclear option, as it would limit EU market access for US suppliers, bar them from participating in government tenders in the bloc, impose restrictions on exports and imports of goods and services, and potentially limit foreign direct investment in the region.
despite being Seen as a ‘big bazooka’ against Trump’s tariff gameIt has not been used before and regional leaders said they want to hold a dialogue with the US in the coming days to resolve their differences over Greenland.
The Financial Times reported that the European Union is considering It imposed tariffs on 93 billion euros ($108 billion).also consider using ACI.
At the same time, Reuters reported that the European Parliament may suspend its work on this issue EU-US trade agreement hit last July. The assembly had been due to vote on January 26-27 to remove most of the EU’s import duties on US goods, but that approval may now be delayed, This was reported by Reuters.
French Finance Minister Roland Lescourt said in comments translated by Reuters on Monday that the EU “must be prepared” to use its anti-enforcement mechanism.
While France is more focused on ACI, Germany is among the countries that have been reluctant to use it in the past.
“Is the EU trying to keep this confrontation limited to a ‘classic’ trade war, or are calls for a tougher line prevailing?” Carsten Nickel, deputy director of research at Teneo, said in an emailed comment. – said.
“Representing the latter camp, France has urged its partners to formally use the EU’s so-called anti-coercion tool … (but) other EU member states, including Germany, may be cautious.”
The reasons for this divide are multifaceted, Nickel notes, including that France has traditionally favored a European role for independence in continental security and is less dependent on exports than other countries such as Germany.
Are there months of controversy ahead?
European leaders were quick to respond to Trump’s unexpected tariff threat, with British Prime Minister Keir Starmer commenting on Saturday that it was “absolutely wrong to impose tariffs on allies to ensure the collective security of NATO allies” and French President Emmanuel Macron described them as “unacceptable”.
However, leaders are expected to use The World Economic Forum is being held in Davos, Switzerlandas an opportunity to try to talk to Trump, who will address the forum on Wednesday this week.
President Donald Trump attends a bilateral meeting with European Commission President Ursula von der Leyen at the 50th annual meeting of the World Economic Forum (WEF) on January 21, 2020 in Davos, Switzerland.
Jonathan Ernst | Reuters
Economists warn that this spring, like last year before the signing of the trade agreement between the US and the EU, could be dominated by heated debates over Greenland.
“My bottom line is that the February 1 (tariffs) deadline will be pushed back as diplomatic measures are implemented,” Mohit Kumar, chief European economist at Jefferies, told CNBC on Monday.
“That being said, I think this is different from the usual TACO (Trump Always Chickens Out) trade. Europe’s position on Greenland is very clear: it will not be sold and they will not tolerate aggression … But Trump has shown that he wants Greenland. I don’t see how the issue will be resolved soon.
“It is negative for Europe. Growth will fall,” he warned in what could be a busy market day for European stocks on Monday, Regional indices are likely to decline at the open.