EU Draws a Line as Trump Ties Tariffs to Greenland
Tensions between Washington and Brussels are boiling over again after President Donald Trump threatened sweeping tariffs on European goods unless the United States secures a deal to acquire Greenland. European leaders aren’t mincing words — and they’re calling it a mistake.
Speaking at the World Economic Forum in Davos, European Commission President Ursula von der Leyen delivered a pointed rebuke.
“The European Union and the United States agreed to a trade deal last July,” she said. “In politics as in business, a deal is a deal. And when friends shake hands, it must mean something.”
Trump’s Tariff Ultimatum
Trump has announced plans to impose a 10% tariff on goods from eight EU countries starting February 1, escalating to 25% by June, unless Europe agrees to negotiations over the “purchase of Greenland” — a semi-autonomous territory of Denmark, an EU member and NATO ally.
The move stunned European capitals, with leaders warning that Trump has crossed a red line by linking trade penalties to territorial ambitions.
Europe Promises a United, Proportional Response
Von der Leyen said the EU’s response would be “unflinching, united and proportional,” signaling that retaliation is firmly on the table.
An emergency meeting in Brussels is scheduled for Thursday, where EU leaders will map out countermeasures. European Council President Antonio Costa stressed that all 27 member states stand behind Denmark and Greenland and are ready “to defend ourselves against any form of coercion.”
Behind closed doors, EU envoys have agreed to pursue diplomacy first — but with contingency plans ready if Washington moves ahead with new duties.
A Fragile Trade Deal at Risk
The dispute threatens to unravel a delicate trade agreement reached last summer, which many in Europe already viewed as a painful compromise.
The deal:
Set 15% US tariffs on most EU goods
Required the EU to eliminate duties on US industrial goods and some agricultural products
Von der Leyen pushed the agreement through to avoid a full-scale trade war. Now, European Parliament leaders have warned they may freeze implementation following Trump’s latest threats.
Retaliation Options: From Tariffs to the “Nuclear Button”
Among the measures under consideration:
Reinstating tariffs on €93 billion ($109 billion) worth of U.S. goods
Targeting Boeing aircraft, cars, and bourbon
Activating the EU’s never-used Anti-Coercion Instrument
This powerful tool could restrict U.S. firms’ access to EU markets, limit investments, impose fees, or bar companies from bidding on public contracts across the bloc.
It’s the EU’s trade weapon of last resort — and it’s now firmly on the table.
Greenland, Arctic Security, and Europe’s Next Move
To support Greenland, von der Leyen announced work on a major EU investment package, alongside deeper cooperation on Arctic security.
She floated plans for:
A European icebreaker capability
New defense equipment tailored to Arctic operations
These initiatives will feature in the EU’s upcoming security strategy, signaling that Brussels intends to strengthen its presence in the region — with or without Washington’s blessing.
More Sparks: Wine, Champagne, and Global Snubs
Trump’s confrontational approach hasn’t stopped at Greenland. He also stirred controversy with plans for a “Board of Peace”, initially focused on Gaza but now seen by European leaders as an attempt to sidestep the United Nations. Several EU leaders, including French President Emmanuel Macron, declined to attend its launch.
Trump’s response? A threat of a 200% tariff on French wines and champagnes.
Bottom Line
What began as a provocative idea about Greenland has morphed into a serious test of transatlantic trust. With tariffs, retaliation tools, and geopolitical pride all in play, the risk of a renewed US–EU trade war is no longer theoretical.
As Europe puts it plainly: friendships come with obligations — and broken deals have consequences.