European leaders are thinking about using their never-before-used “trade bazooka” after President Trump threatened to put huge tariffs on goods from eight European countries unless the United States can buy Greenland. The shocking threat from the White House has caused anger across Europe and forced diplomats into emergency meetings.
President Trump announced the tariff plan on Saturday through a social media post while at his golf club in West Palm Beach, Florida. He said the U.S. would charge a 10% import tax starting in February on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. Trump warned the rate would jump to 25% on June 1 if no deal was reached for “the Complete and Total purchase of Greenland” by the U.S.
According to AP News, European leaders quickly criticized the announcement as economic bullying. Representatives gathered in Brussels on Sunday for an emergency meeting and said they are ready to use the combined economic power of the 27-nation European Union if talks fail.
Europe balances restraint with readiness to fight back
The EU’s main goal right now is staying calm. European Commission spokesperson Olof Gill stressed restraint, stating, “Our priority is to engage, not escalate. Sometimes the most responsible form of leadership is restraint.” However, Gill quickly added a warning, saying, “The EU has tools at its disposal and is prepared to respond should the threatened tariffs be imposed.”
The most serious tool the EU is considering is the Anti-Coercion Instrument, or ACI. This mechanism is called the “trade bazooka” because of its huge economic power. The ACI allows the EU to punish individuals or institutions that put unfair pressure on the bloc. The EU created this tool in 2021 after Beijing restricted trade to Lithuania for building ties with Taiwan.
Many European capitals hesitate to use the instrument, fearing it would trigger a massive fight, but France and Germany have shown their support. French President Emmanuel Macron firmly stated that “Tariff threats are unacceptable and have no place in this context.”
He added that “Europeans will respond in a united and coordinated manner should they be confirmed. We will ensure that European sovereignty is upheld.” As concerns grow over Trump’s serious intentions to annex Greenland, allies are becoming increasingly worried.
U.S. Treasury Secretary Scott Bessent, speaking on Monday in Davos, Switzerland, said EU officials were actively reaching out to the administration, noting there were “a lot of inbounds.” Bessent warned the EU against fighting back, calling any such move “very unwise.”
The stakes are very high, as the EU-U.S. trade relationship is valued at 1.7 trillion euros (about $2 trillion) in 2024. The EU has other options too. They could put tariffs on U.S. goods worth 93 billion euros that were paused after a trade deal framework was reached in July.
Ireland’s Minister of Finance Simon Harris urged caution, stating, “This is a time for cool heads.” Meanwhile, a U.S. lawmaker plans to visit Denmark amid the escalating tensions. The 27 EU leaders will meet in Brussels on Thursday evening for an emergency meeting to discuss relations with the U.S.
Published: Jan 21, 2026 01:15 pm