The EU is preparing a multi-billion dollar response to the US amid escalating trade threats

The European Union is preparing a set of measures in response to US President Donald Trump's threats to impose additional tariffs on European countries that supported Denmark on the issue of Greenland. According to the Financial Times, Brussels is discussing the possibility of imposing tariffs on American goods totalling up to $93 billion or restricting US companies' access to the EU single market.

According to officials, these steps are intended to be a tool for exerting pressure during negotiations with Trump, which are planned for the World Economic Forum in Davos. The European Union prepared some of the tariff measures last year, but their implementation was postponed until 6 February to avoid a full-scale trade war. Now, these scenarios are back on the table, along with discussions about the possibility of using the Anti-Coercion Instrument (ACI), which was adopted in 2023 but has never been used.

The ACI provides not only for trade restrictions, but also for the possibility of reducing investment and exports of services, particularly by American technology corporations. The impetus for the intensified discussions was Trump's statements on the social network Truth Social, where he announced the introduction of 10% tariffs on goods from eight countries that opposed the US purchase of Greenland, effective 1 February 2026. These countries are Denmark, Norway, Sweden, Finland, France, Germany, the Netherlands and the United Kingdom. According to Trump, tariffs could rise to 25% from 1 June if no agreement on Greenland is reached.

At the same time, there is no consensus in the European Union on an immediate tough response. France insists on the active use of ACI and is coordinating its position with Germany, while a number of other states are calling for diplomatic dialogue to be attempted first in order to prevent a new round of trade war. The European Parliament has already announced its readiness to suspend the ratification of trade agreements with the US, and European Commission President Ursula von der Leyen has warned that tariff escalation could seriously undermine transatlantic relations.

EU, Donald Trump, trade tariffs, Greenland, ACI, US