The European Union assembled a €93 billion ($108 billion) tariff package aimed at US imports on Sunday, marking the most serious transatlantic trade crisis in decades as Brussels responds to President Trump's demands to acquire Greenland.
The retaliation measures, discussed by EU ambassadors over the weekend, represent the bloc's leverage heading into pivotal meetings with Trump at the World Economic Forum in Davos this week. The tariff list was originally prepared last year but suspended until February 6 to avoid a trade war. EU officials confirmed its reactivation is now under active consideration.
Trump escalated tensions Saturday evening by threatening 10% tariffs on goods from the UK, Norway, and six EU countries that deployed troops to Greenland for military exercises. Those tariffs would take effect February 1 and escalate to 25% by June if Denmark refuses to negotiate the sale of Greenland, a demand the Danish government has categorically rejected.
"There are clear retaliation instruments at hand if this continues," a European diplomat briefed on the discussions told the Financial Times. "He's using pure mafioso methods."
The EU is considering two primary weapons. The first is the tariff package, which would hit $108 billion worth of American imports. The second is the anti-coercion instrument (ACI), a regulatory tool adopted in 2023 but never deployed. The ACI could restrict investment and throttle exports of services from US tech giants including Google, Amazon, and Microsoft in the European market.
France has led calls to deploy the ACI, with Paris and Berlin coordinating a joint response. French and German finance ministers were scheduled to meet in Berlin on Monday before traveling to Brussels for broader European consultations. "The issue will also have to be broached with all G7 partners under France's presidency," a French ministry aide said.
The European Parliament took its first concrete step toward retaliation over the weekend, delaying a planned vote that would have reduced EU tariffs on US goods under a trade agreement struck last year.
European Commission President Ursula von der Leyen is scheduled for private talks with Trump in Davos on Wednesday and Thursday. "We will stand firm in our commitment to uphold the sovereignty of Greenland and the Kingdom of Denmark," von der Leyen said Sunday. "We will always protect our strategic economic and security interests."
