European leaders have pledged to maintain unity in response to an unprecedented development: President Trump has threatened new tariffs unless Denmark agrees to sell Greenland to the United States. This escalation has significantly heightened tensions between the US and Europe. European Commission President Ursula von der Leyen underscored the European Union’s determination to defend its sovereignty against external pressure.
EU Response to US Tariffs
Following the Trump administration’s announcement of a 10% tariff on goods from eight European countries, effective February 1 and with the possibility of increasing the rate to 25% by June, the EU has taken decisive action. These tariffs are explicitly linked to the US demand for the purchase of Greenland. In light of this, EU leaders—including Ursula von der Leyen, French President Emmanuel Macron, and German Chancellor Friedrich Merz—have publicly committed to remaining “united, coordinated, and committed” to protecting Europe’s sovereignty.
Greenland’s Strategic Significance and the EU Mission
Greenland, a semi-autonomous territory under Danish control, became the focal point of this dispute after a joint mission by the EU and other countries prompted retaliatory tariffs from the White House. The US has escalated its demands, insisting that Greenland must transfer to US control for security reasons, and has dismissed European efforts to safeguard the territory. Danish officials, in recent discussions with their US counterparts on Arctic security, have rejected US allegations regarding foreign naval presence, affirming that no Chinese ships have entered Greenland’s waters in the past decade.
Implications for Transatlantic Relations and Trade
The newly imposed tariffs threaten to ignite a trade war. Last summer, the EU-US trade deal had already seen increased duties on European goods (up to 15%) and the removal of tariffs on US products, concessions made partly for the sake of Ukraine and broader stability. The current situation, however, places these efforts at risk. EU Council President António Costa is now leading a coordinated response, while Ursula von der Leyen has warned that the tariffs could damage transatlantic relations and jeopardize the stability that both sides have worked to maintain.
European Solidarity and Calls for Retaliation
The EU manages trade negotiations collectively, but the US has shown willingness to target individual countries or industries. Several European nations that have supported Denmark are now subject to tariffs, a move that has surprised Danish Foreign Minister Lars Løkke Rasmussen. He emphasized that the recent mission was intended to enhance security in the Arctic, not provoke conflict. French President Macron has condemned the tariff threats as unacceptable, stating unequivocally that the EU will not be intimidated. Other European leaders, including Swedish Prime Minister Ulf Kristersson, have echoed calls for a united and robust response.
Shift Toward Stronger Retaliatory Measures
The current dispute has renewed demands within the EU to activate its anti-coercion trade instrument. This mechanism would allow the EU to retaliate against US measures by restricting American market access and procurement opportunities. Members of the European Parliament argue that normal trade relations cannot continue while President Trump uses tariffs as tools for political coercion. Some have gone so far as to propose suspending US trade benefits, reflecting a growing consensus for stronger and more prepared retaliatory measures as the situation evolves.
