European Union leaders will gather in Brussels on Thursday for an emergency meeting. They need to decide how to respond to a tariff threat from United States President Donald Trump. The situation has created significant tension across the Atlantic.
Trump's Tariff Announcement
On Saturday, President Trump declared his intention to impose a new wave of tariffs. These duties would target eight European nations starting February 1. The list includes Denmark, Sweden, France, Germany, the Netherlands, Finland, Britain, and Norway.
Trump stated this move was necessary. He linked it to the United States being allowed to purchase Greenland. European leaders reacted with sharp criticism. They described the threat as coercive and completely unacceptable.
EU's Prepared Response Options
During the emergency summit, leaders will discuss two primary response strategies. The first option involves a previously approved package of retaliatory tariffs. This package covers €93 billion worth of US imports.
These measures were suspended last year after a limited trade agreement. However, they could automatically come into force from February 6 if no solution emerges. The second option is the EU's "Anti-Coercion Instrument" or ACI.
This powerful tool has never been used before. It would allow the bloc to restrict US access to public procurement, investment, banking, and trade in services. The United States currently runs a surplus with the EU in services, including digital services.
EU sources indicate support for immediately using the ACI remains mixed. There appears to be broader backing for tariffs as an initial response.
Diplomatic Efforts and European Unity
EU ambassadors met on Sunday and broadly agreed on a bilateral approach. This strategy involves intensifying diplomatic efforts to discourage Washington from proceeding. Simultaneously, they are preparing retaliatory measures in case the duties are imposed.
European Council President Antonio Costa stated that consultations with member states showed strong unity. He emphasized support for Denmark and Greenland and a shared readiness to defend against any form of coercion.
Danish Prime Minister Mette Frederiksen echoed this stance. She said Europe would not be blackmailed while welcoming the solidarity shown by other EU capitals. However, Denmark has stressed the need to keep diplomatic channels open.
Danish Foreign Minister Lars Løkke Rasmussen said Copenhagen would continue focusing on dialogue. He pointed to a working group established last week involving Denmark, Greenland, and the United States.
Diverging Views Within the EU
Views within the European Union remain divided on how hard a line to take. A source close to French President Emmanuel Macron said he favors activating the ACI instrument.
Irish Prime Minister Micheál Martin stated retaliation was inevitable if tariffs were imposed. However, he cautioned it was premature to deploy the new ACI tool. Italian Prime Minister Giorgia Meloni called the tariff threat a mistake.
She confirmed she had raised her concerns directly with President Trump. In Britain, Culture Secretary Lisa Nandy said allies should work with the United States to resolve the dispute.
She stressed the need to avoid escalating rhetoric. Nandy also emphasized that London's position on Greenland was non-negotiable.
Broader Implications and Market Reaction
The eight targeted countries already face US duties ranging from 10% to 15%. They issued a joint statement on Sunday warning that tariff threats undermine transatlantic relations.
The statement highlighted the risk of a dangerous downward spiral. It also expressed readiness to engage in dialogue based on respect for sovereignty and territorial integrity.
The tariff threat has cast doubt on recent trade arrangements. The European Parliament is expected to suspend work on approving the EU-US trade deal. This deal was due for a vote later this month.
Lawmakers from major political groups said approval was impossible under the current circumstances. Markets reacted nervously to these developments.
The euro and sterling fell against the dollar. Analysts warned of renewed volatility if the standoff deepens further.
Diplomacy at Davos
Diplomatic efforts are also expected to feature prominently at the World Economic Forum in Davos. President Trump is due to deliver a keynote address there on Wednesday.
This marks his first appearance at the event in six years. One EU diplomat summarized the bloc's approach as having all options on the table.
The strategy involves talks in Davos followed by the leaders' meeting in Brussels. The coming days will be crucial for transatlantic trade relations.
