President Donald Trump is threatening sweeping new tariffs on several European allies, escalating tensions across the Atlantic and putting a potential U.S.–European Union trade agreement in jeopardy.
Trump said he would impose a 10% tariff beginning Feb. 1 on imports from eight NATO allies — France, Germany, the United Kingdom, the Netherlands, Denmark, Norway, Sweden and Finland — unless the United States reaches a deal to acquire Greenland. He warned the tariffs would rise to 25% in June if no agreement is reached.
The proposal triggered immediate criticism from European leaders, who described the move as economic coercion and warned of retaliation. Several officials said the threat could derail broader trade talks and further strain the transatlantic alliance.
French President Emmanuel Macron and other European leaders have reportedly discussed deploying the EU’s so-called anti-coercion instrument, a powerful trade enforcement tool adopted in 2023 but never before used. The measure could restrict U.S. companies’ access to the European single market.
Manfred Weber, leader of the European Parliament’s largest political bloc, said approval of an EU–U.S. trade agreement “is not possible at this stage,” adding that plans for zero tariffs on U.S. products should be put on hold. Bernd Lange, chair of the European Parliament’s trade committee, called the tariff threat “unbelievable” and “unacceptable,” saying a “new line has been crossed.”
European Commission President Ursula von der Leyen warned that new tariffs could spark a “downward spiral” that would damage transatlantic relations. Leaders from Sweden, Germany, Norway and the Netherlands all described Trump’s move as “blackmail.”
The eight countries targeted by the tariffs issued a joint statement pledging to remain united and coordinated in their response.
European Council President António Costa said he will convene an extraordinary meeting of EU leaders in the coming days, noting a shared “readiness to defend ourselves against any form of coercion.” Multiple reports said EU leaders also held emergency discussions over the weekend.
Trump has argued that U.S. ownership of Greenland is necessary for national security, citing concerns about China and Russia in the Arctic. European officials counter that Greenland’s security can be addressed within NATO and warned that tariff threats could weaken the alliance.
EU foreign policy chief Kaja Kallas said divisions among allies would benefit Beijing and Moscow, while making both Europe and the United States poorer.
Source: Axios