Key Takeaways
- The European Union is preparing to impose €93bn ($107.71bn) worth of tariffs on the US in response to Donald Trump’s threats over Greenland.
- The US has threatened to impose 10% tariffs on European allies, including Denmark, Finland, France, Germany, Netherlands, Norway, Sweden, and Britain, if they do not support the US acquisition of Greenland.
- The EU is considering restricting US companies from its market in response to the threats.
- The UK prime minister, Sir Keir Starmer, has held a call with Trump, telling him that applying tariffs on allies for pursuing the collective security of NATO allies is wrong.
- The US treasury secretary, Scott Bessent, has said that the US needs to control Greenland for global stability due to European "weakness".
Introduction to the Tariff Dispute
The European Union is reportedly preparing to strike the US with a hefty set of tariffs worth €93bn ($107.71bn) after Donald Trump’s threats over Greenland on Saturday. The bloc is also considering restricting US companies from its market in response to the threats, according to the Financial Times. This move is seen as a response to Trump’s announcement that he would impose 10% tariffs on European allies, including Denmark, Finland, France, Germany, Netherlands, Norway, Sweden, and Britain, if they do not support the US acquisition of Greenland.
The EU’s Response to the Tariff Threats
The EU’s response to the tariff threats is seen as a way to provide European leaders with leverage in pivotal meetings with Trump at the World Economic Forum in Davos this week. The list of tariffs was prepared last year but had been suspended until 6 February in order to avoid a trade war. During a meeting of 27 EU ambassadors on Sunday, its reactivation was discussed. The diplomats also discussed using the anti-coercion instrument, which would limit American access to the EU market. A European diplomat said that the bloc is taking on a carrot-and-stick approach to Donald Trump after his tariff threats relating to Greenland.
The UK’s Position on the Tariff Dispute
The UK prime minister, Sir Keir Starmer, has held a call with Trump, telling him that applying tariffs on allies for pursuing the collective security of NATO allies is wrong. The UK has also been involved in discussions with the EU on how to respond to the tariff threats. A British cabinet minister has insisted that "people are capable of changing their minds", in the wake of Donald Trump’s announcement of fresh tariffs on Britain and other countries in an attempt to acquire Greenland. The minister told Sky News that the UK has been talking with the US administration about the serious challenges posed by the tariff threats.
The US’s Motivations for Acquiring Greenland
The US treasury secretary, Scott Bessent, has said that the US needs to control Greenland for global stability due to European "weakness". He made the remarks a day after U.S. President Donald Trump vowed to implement tariffs on European Union members opposed to a U.S. acquisition, including Denmark, which has long been one of Washington’s staunchest allies. Bessent said that taking ownership of Greenland is crucial in a geopolitical chess match with Russia and China. He believed that European leaders would ultimately "come around" to the idea of U.S. control of Greenland.
Public Reaction to the Tariff Dispute
The public reaction to the tariff dispute has been mixed, with some people expressing support for the EU’s response to the tariff threats. At an NBA game in London, a heckler’s outburst about Greenland drew cheers from the crowd, highlighting growing tensions over President Donald Trump’s attempts to acquire the Arctic island. The crowd cheered when a man yelled "Leave Greenland alone!" from the stands, eliciting some claps, whistles, and cheers from fellow spectators.
Potential Consequences of a US Attack on Greenland
In the unlikely event of a US attack on Greenland, there are several things Europe could do in response. Shannon Brincat, Senior Lecturer in Politics and International Relations, University of the Sunshine Coast, writes that Europe could deploy forces, as already requested by Greenland. The Danish government has already expanded its military in Greenland and launched "Operation Arctic Endurance" in cooperation with allies including France, Germany, Norway, and Sweden. However, sending 50-100 troops to Greenland is hardly a show of strength, with a handful of soldiers to cover areas the size of Switzerland. Countries in NATO have an agreement for collective defense, but the alliance would be sorely tested in the event of a US attack.