European Union flags fly outside the EU headquarters in Brussels, Belgium on December 19, 2025.
Nurphoto Nurphoto Getty Images
Prime Minister of Greenland Jens-Frederik Nielsen stood firm on the island’s self-rule, said Monday, “Recent US statements, including the threat of tariffs, will not change that line. We will not be pressured,” Google Translate said.
In response to U.S. President Donald Trump, Europe is unleashing its trade “bazooka” and mulling 93 billion euros ($108 billion) in tariffs on the United States. Eight European countries are threatened with tariffs unless an agreement is reached to sell Greenland.
At an emergency meeting in Brussels on Sunday local time, France demanded that the European Union use an “anti-coercion tool”. Financial Times.
According to the EUthe tool is designed to avoid “economic coercion” that would prompt policy changes that could affect trade and investment in the bloc. Retaliation could include not only trade and financial market measures, but also “trade-related aspects of intellectual property” and “government procurement.”
The scale of the impact has caused ACI to be seen as a nuclear option against Trump’s tariffs. Therefore, not all EU members are ready to accommodate it. Germany has tended to be reluctant to use it in part because its economy is more dependent on exports, Carsten Nickel, Teneo’s deputy research director, told CNBC.
But no matter where you are on the continent, there is no escaping Trump’s tariffs. Sectors most affected Includes the automotive industry, which includes Germany BMW and listed in Milan Star as members, trendy names like France LVMH and Dryand pharmaceutical giants from Denmark and Switzerland New Nordisk and Rocherespectively.
The news sent shockwaves through the markets. related to futures Dow Jones Industrial Average the index shows a 378-point drop on Tuesday. European stocks fell sharply on Monday, while safe-haven assets gold and silver was shooting to reach new heightsjust days after breaking previous records.
This is just Trump’s reaction to the first round of tariffs. If the EU retaliates with retaliatory tariffs or its trade bazooka, expect the fallout to be bigger and wider.
— CNBC’s Holly Ellyatt contributed to this report.
What you need to know today
Europe uses a trade “bazooka” against the US France on Sunday insisted on using the E.U the strongest economic counter-threat So-called “Anti-Enforcement Tool” to US to counter Trump’s Greenland tariffs.
Powell will attend the Supreme Court’s arguments. Chairman of the Federal Reserve plans to participate in oral arguments on Wednesday in the US Supreme Court in a case challenging Trump’s right to fire the Fed governor Lisa CookA person familiar with the situation told CNBC.
Putin invited Trump to join the Peace Council, the Kremlin said. The council, which was created by Trump last year, is seen as a conduit Oversees Gaza reconstruction. Trump reportedly wants people to do that will pay $1 billion for fixed positions on the board.
US futures fell. On Monday night, stock futures in the state showed the main indexes ready to open lowerWith a drop of more than 300 points for the Dow. Markets are closed for holidays. Pan-European Stoxx 600 lost 1.19% as shares the auto giants fell.
(PRO) Europe has an advantage among Greenland tariffs. According to Deutsche Bank analysts, “the US has major weakness” it can influence European countries.
And finally…
Trump is going to Davos – there are big names who won’t be here
US President Donald Trump is attending the annual meeting of the World Economic Forum in person for the first time since he addressed the first term of 2020. This time, he will bring the “largest” US delegation yet, according to the WEF.
A WEF spokesman said on Monday that representatives of the Danish government had been invited and declined to attend as the dispute over Greenland escalated. Chinese President Xi Jinping is absent Participation list of WEFand neither are the leaders of Brazil and India.
– Lucy Handley