Executive Summary
European Union member states have harshly criticised Donald Trump’s plans to obtain Greenland. His decision to impose tariffs up to 10% on eight European states has caused diplomatic tensions over the stability of transatlantic relations. A security meeting among the member states is supposed to plan a coordinate reaction to Trump’s threat, considering the imposition of counter tariffs. If the EU wishes to remain a credible pillar of the multipolar order, it should defend the territorial integrity of members and reduce security and economic dependencies on external actors.
Key Points
- On January 17, 2026, the President of the United States (US) announced on Truth Social that he will be imposing tariffs up to 10% from primarily eight European states, including Germany, France, and the United Kingdom.
- These tariffs will apply on February 1 and are expected to rise to 25% in June and will be enforced until a deal to purchase Greenland has been signed. The EU is interpreting this measure as economic coercion by the US.
- There will be a security meeting convened by the EU to discuss a united reaction refusing Trump’s Greenland plans and are considering counter-measures such as the application of the Anti-Coercion Instrument (ACI) and counter tariffs.
Analysis
In the past, European countries were cautious in criticising the US to maintain stable relationships and the security support. Comparatively, the European countries are now preparing to levy a more assertive reaction to US tariffs. German Chancellor Friedrich Merz is warning the US from escalations, reminding that tariffs also impact American consumers. British Prime Minister Keir Starmer is appealing to diplomatic conversations while French President Emmanuel Macron is supporting the application of ACI.
Counter tariffs amounting to 93 billion euros could be imposed in February. Targeted sectors include tech platforms or agricultural products. If larger platforms (Cloud, Online Advertisement, App stores, social media) are restricted in the EU market , US companies would lose one of their most important sales markets. Depending on the company, Europe makes up to a quarter or a third of the global trade. Sanctioning these platforms would amount to a loss of several hundreds of billions of dollars for the USA per year.
Created in 2023, it aimed at providing the EU with a tool to counter economic coercion. However, not all countries agree to apply this instrument because most EU member states are not affected by the tariffs. Merely a qualified majority is needed in the EU-council to activate ACI; unanimity is not required so no member state blocks the reaction.
There are potential consequences for the EU’s credibility. Since the global order is increasingly dominated by power interests, the non-application of ACI could contribute to perceptions that the instrument remains largely symbolic rather than a substantive economic tool for European states to respond to economic warfare. Europe should engage more profoundly with strategic and military questions, as this confrontation between NATO members could increase US security aid for Europe, causing broader implications for European security.
Policy Recommendations
- The EU, Denmark, and Greenland should insist in a joint statement that they will not cede any territory to any state, refuse tariffs as a means of pressure and that Greenland’s self-determination is absolute.
- Preparing counter-tariffs by applying the ACI for vulnerable sectors such as tech companies while being open for negotiations signals European strength and increases credibility into European instruments.
- The EU should expand its trade with other countries and invest into a common military strategy to decrease dependence on the US economy and military.
References
https://www.bbc.com/news/articles/cgk8z8xxpgmo
https://www.tagesschau.de/eilmeldung/usa-groenland-eu-trump-zoelle-100.html
https://trade.ec.europa.eu/access-to-markets/en/content/anti-coercion-instrument