EU ambassadors reached a consensus on Sunday to pursue a dual-track strategy against U.S. President Donald Trump’s latest tariff threats. While the bloc aims to dissuade the U.S. from imposing new duties scheduled for February 1, it is simultaneously preparing significant retaliatory measures. The tension stems from Trump’s vow to target several European nations until the U.S. is permitted to purchase Greenland, a demand EU leaders have condemned as blackmail. An emergency summit is scheduled for Thursday in Brussels to finalize the response.
European officials are currently weighing two primary retaliatory paths. The first involves a package of tariffs on 93 billion euros of U.S. imports that could be triggered as early as February 6. The second, more aggressive option is the Anti-Coercion Instrument (ACI). This never-before-used tool would allow the EU to restrict U.S. access to public tenders, investments, and digital services. While the tariff package currently has broader support, some leaders, including French President Emmanuel Macron, are pushing for the ACI, while others remain cautious about escalating too quickly.
Diplomatic efforts will intensify this week at the World Economic Forum in Davos, where Trump is expected to speak. European Council President Antonio Costa and Danish Prime Minister Mette Frederiksen have both emphasized a unified front, asserting that Europe will not be coerced into compromising its sovereignty over Greenland. To underscore their stance, the eight targeted nations have deployed a small number of military personnel to the island and issued a joint statement warning that tariff threats risk a dangerous downward spiral in transatlantic relations.
The escalating dispute has already rattled global markets, causing the euro and sterling to weaken and casting doubt on existing trade agreements. In response to the friction, the European Parliament is expected to suspend work on a recent EU-U.S. trade deal, with leading lawmakers stating that approval is currently impossible. Some German officials have even suggested extreme measures, such as a boycott of the upcoming soccer World Cup in the United States, as a final attempt to resolve the Greenland issue.
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