European Leaders Vow to Not Bow to Trump's Tariff Threats

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Threats by U.S. President Donald Trump to impose fresh tariffs on eight allied European nations which are opposed to his proposed takeover of Greenland has drawn strong condemnation from European leaders.

A Strong Reaction

Europe's leading nations have reacted strongly to threats by the U.S. President Donald Trump to impose fresh tariffs on eight allied nations which are opposed to his proposed takeover of Greenland. 

Looming Tariff War

Last year's specter of a narrowly avoided Europe-U.S. tariff war is hovering again after Trump announced a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands and Finland. The tariffs on the eight nations that have vocally opposed his takeover plans for Greenland would come into force on February 1 and could be bumped up to 25% on June 1 unless a deal is reached. Last July, the European Commission (EC) managed to negotiate a deal that heavily favored the U.S. in order to head off the imposition of heavy trade tariffs on key sectors. That deal did not include a reduction of the 50% tariff imposed by the Trump administration on Europe's steel and aluminum sectors. For additional information, see July 29, 2025, article - Europe Seals 'Last-Minute' Tariff Deal with U.S..

Germany & France React to 'Blackmail'

The finance ministers of both Germany and France stated that European powers will not be "blackmailed" and that the U.S. can expect a united response. "Germany and France agree: We will not allow ourselves to be blackmailed," commented German Finance Minister Lars Klingbeil. His sentiments were echoed by his French counterpart, Roland Lescure: "Blackmail between allies of 250 years, blackmail between friends, is obviously unacceptable." A more muted response came from the U.K. Prime Minister Keir Starmer, who admitted that U.S. tariffs would be bad for the British economy but that retaliatory tariffs would be the "wrong thing to do." He said he did not believe that Trump was seriously thinking about taking military action in the Arctic territory and added: "I think that this can be resolved, and should be resolved, through calm discussion." 

The EU Response

In a joint statement released on Monday, European Commission (EC) President Ursula von der Leyen and European Council President Antonio Costa said: "The EU stands in full solidarity with Denmark and the people of Greenland. Dialogue remains essential, and we are committed to building on the process begun already last week between the Kingdom of Denmark and the U.S. Tariffs would undermine transatlantic relations and risk a dangerous downward spiral. Europe will remain united, coordinated, and committed to upholding its sovereignty. Territorial integrity and sovereignty are fundamental principles of international law. They are essential for Europe and for the international community as a whole. We have consistently underlined our shared transatlantic interest in peace and security in the Arctic, including through NATO."

Speaking to NBC in the U.S., Trump would not confirm if he planned to invade Greenland but when asked if he will follow through on the 10% tariffs against his NATO allies, he responded: "I will, 100%." 

The Greenland Issue

In recent weeks, following the U.S. action in Venezuela, all eyes have turned to Greenland, which has been the subject of increased calls by Trump to be acquired by the U.S. for "security reasons.". Failing that, threats to take Greenland by force have been made. A year ago, talks over Greenland focused on its rich mineral resources, which would be difficult to mine profitably. Now, security reasons are being touted as the main criteria for military action. This is not the first time the fate of Greenland has featured in U.S. history. For additional information, see January 12, 2026, article - Back on the Radar: U.S. Acquisition of Greenland for Strategic Reasons.

Europe's Potential Responses

The first response to any tariff attack by the U.S. in the coming weeks could see the EU revive a 93 billion euro (US$ 108 billion) package of counter-tariffs that it prepared last spring after Trump revealed his sweeping "Liberation Day" tariffs on global nations. It would target U.S. industrial and agricultural imports, including cars and aircraft, spare parts, medical devices, plastics, chemicals, electronics, food and beverages, and petroleum products. For additional information, see May 29, 2025, article - Europe's $106 Billion Response to U.S. Tariffs.

The other tool open to Europe is the so-called "trade bazooka," known as the Anti-Coercion Instrument (ACI), an extreme deterrent designed in 2023 with Russia and China in mind. The ACI is a response to economic coercion which lets the EU shut down access to the European single market, which represents roughly 500 million consumers. It includes the imposition of tariffs, restrictions on trade in services and trade-related aspects of intellectual property rights, and restrictions on access to foreign direct investment and public procurement.

Global Economic Fallout

The International Monetary Fund (IMF) has called on cool heads to prevail, claiming that the Greenland tariff threats could trigger a "spiral of escalation" that would damage the world economy and spark a market sell-off. Pierre-Olivier Gourinchas, the IMF's chief economist, said: "This is a major risk. This is something that could materially impact growth if we have higher levels of tariffs, if we have higher levels of geopolitical tensions--and that's something we are monitoring carefully." If Europe responds with counter-tariffs, he said that it will have a "very sizable impact on the global economy," adding, "We all know there are no winners in a trade war and that's the thing to remember."

Key Takeaways

• Leading European nations and the EU have reacted strongly to threats by Trump to impose fresh tariffs on eight allied nations.
• The new tariffs threat comes as leading European nations reject Trump's calls to take over Greenland.
• A tariff war will have a "very sizable impact on the global economy," stated the International Monetary Fund (IMF).

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