EU vs Trump: Bloc readies $107.7 bn tariff response amid efforts to dissuade threat over Greenland 

European capitals are closing ranks as pressure mounts on Washington. On Sunday, European Union ambassadors agreed to step up diplomatic efforts to dissuade US President Donald Trump from pressing ahead with tariff threats against European allies, while simultaneously preparing retaliation if talks fail, EU diplomats said.

The move comes after Trump vowed on Saturday to impose a new wave of tariffs from February 1 on imports from Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, unless the United States is allowed to buy Greenland, an approach several EU capitals described as blackmail.

EU's two-point fight plan

EU leaders are now set to weigh their options at an emergency summit in Brussels on Thursday. One proposal under consideration is a package of counter-tariffs on €93 billion ($107.7 billion) worth of US imports that could automatically take effect on February 6, following the end of a six-month suspension.

Another, more far-reaching option is the bloc’s never-used Anti-Coercion Instrument (ACI), which would allow Brussels to restrict US access to public procurement, investment opportunities, banking activity or parts of the services sector, where the United States runs a surplus with the EU, particularly in digital services. According to an EU source, the tariff package currently enjoys broader backing than the ACI, where support remains “very mixed”.

European Council President Antonio Costa said consultations among member states had shown strong unity behind Denmark and Greenland and a shared readiness to counter “any form of coercion”. His comments came as European leaders sought to balance deterrence with dialogue.

Wef to play the diplomacy ground between EU and US

Diplomatic engagement is expected to intensify this week at the World Economic Forum in Davos, where Trump is due to deliver a keynote address on Wednesday, his first appearance at the gathering in six years. Summing up the EU’s approach, one diplomat said: “All options on the table, talks in Davos with the U.S. and leaders gather after that.”

The eight countries targeted by Trump, already facing US tariffs of between 10% and 15%, issued a joint statement warning that the threats “undermine transatlantic relations and risk a dangerous downward spiral”. They said they stood ready for dialogue grounded in sovereignty and territorial integrity. Danish Prime Minister Mette Frederiksen echoed that line, saying: “Europe will not be blackmailed”.

(With inputs from Reuters)