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Europe Stands United to Avert Trade War After Trump’s Greenland Tariff Threat
A sudden threat by former US President Donald Trump to impose tariffs to seize Greenland sent Europe scrambling to protect the transatlantic alliance. For five tense days, Trump warned he would apply a 10% tariff on eight NATO member states unless Denmark agreed to sell the semi-autonomous, mineral-rich island.
“This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland,” Trump wrote on social media, prompting widespread condemnation from European leaders defending Denmark’s sovereignty.
EU ambassadors met the following day to prepare for 1 February, when the tariffs were set to take effect. France took the lead, calling for the use of the Anti-Coercion Instrument, which allows retaliation across multiple economic sectors. Previously designed for China, the mechanism had never been used, even amid Trump’s 2025 trade negotiations, which divided EU member states.
“Plunging us into a dangerous downward spiral would only aid the very adversaries we are both so committed to keeping out of our strategic landscape,” European Commission President Ursula von der Leyen said in Davos. “So our response will be unflinching, united and proportional.”
European capitals quickly prepared for potential retaliation, drafting a €93 billion list of countermeasures. The European Parliament also voted to indefinitely delay the ratification of the EU-US trade deal, blocking zero-tariff benefits for American products agreed in July.
Despite this display of unity, European leaders emphasized diplomacy as their preferred path. German Chancellor Friedrich Merz said, “We want to avoid any escalation in this dispute if at all possible. We simply want to try to resolve this problem together.” Finnish President Alexander Stubb described the effort as finding an “off-ramp” to prevent a full-blown clash while safeguarding Greenland.
Early diplomatic overtures faltered. Bilateral meetings with Trump at Davos failed to materialize, and leaks of texts, including one from French President Emmanuel Macron, highlighted the confusion. Trump’s statements at the World Economic Forum, in which he repeatedly referred to Greenland as “Iceland,” kept tensions high.
Yet his insistence that he did not plan to use military force opened a narrow window for negotiation. NATO Secretary General Mark Rutte met with Trump in Davos to establish a “framework deal” enhancing security in Greenland and the Arctic. The agreement, details of which remain confidential, prompted Trump to abandon his tariff threat and territorial ambitions.
By the time EU leaders convened in Brussels for an emergency summit, the atmosphere had eased. Danish Prime Minister Mette Frederiksen later traveled to Nuuk to ensure Denmark and Greenland were included in the discussions.
“Everybody has drawn the conclusion that the relationship is on a different footing,” a senior EU official said, acknowledging the long-term implications of Trump’s actions. Macron praised Europe’s display of unity, while von der Leyen warned the episode underscored the need for a more independent Europe with diverse international partnerships.
While the immediate crisis passed, the Greenland episode left a lasting mark on transatlantic relations and Europe’s approach to US unpredictability.
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EU Must End ‘Naivety’ on Trade and Confront China’s Industrial Strategy, Says French Minister
France’s Minister for Foreign Trade, Nicolas Forissier, has called on the European Union to abandon what he described as “naivety” in its approach to global trade, urging a tougher stance on countries accused of distorting markets through industrial policy and trade practices.
Speaking in an interview with Euronews’ 12 Minutes With programme, Forissier said Europe must respond more firmly to what he described as the weaponisation of trade dependencies, warning that China in particular could damage its own long-term interests by undermining European industry.
“The Chinese have to understand that they won’t win anything if they destroy the European industry and then the European market, which is an essential market for them,” he said. “We must no longer be naive.”
His comments come as the European Commission prepares to hold an “orientation debate” next week on how to respond to a surge of low-cost Chinese imports. The discussion is expected to shape possible new trade defence measures, with further talks likely when EU leaders meet in Brussels in mid-June.
Forissier said the shift in thinking was not limited to China alone but applied to any country using commercial leverage to gain strategic advantage. “It is not only China,” he said. “It is all the countries that weaponise trade.”
Among the proposals under consideration is a requirement for EU companies to diversify supply chains, sourcing components from at least three different suppliers in order to reduce dependency on any single foreign market. Asked whether he supported such a measure, Forissier replied: “Yes, we have to.”
Other options include targeted tariffs on sensitive industries such as chemicals, alongside stronger use of anti-dumping and anti-subsidy tools to counter imports priced below domestic market levels. These measures are designed to address concerns over overcapacity in China’s industrial sector and its impact on European manufacturers.
The debate is taking place against a backdrop of widening trade imbalances. EU goods imports from China exceeded exports by €359.3 billion in 2025, marking an increase of nearly 20% compared with the previous year.
China has already warned it could retaliate if the bloc imposes new restrictions, raising concerns about potential escalation in trade tensions between two of the world’s largest economies.
France has repeatedly pushed for a more assertive European trade policy, arguing that state subsidies, export controls on raw materials and industrial overproduction in major economies are distorting global markets.
Forissier stressed that Europe must maintain open dialogue with Beijing while defending its own industrial base. “We try to respect the Chinese,” he said. “The Chinese have to respect us, and this is the message European institutions have to send.”
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