The EU will impose €93 billion in tariffs and corporate bans in response to Trump's threats to Greenland.

In response to U.S. President Trump applying tariffs and security issues to pressure European allies, demanding Denmark cede sovereignty over Greenland, the European Union is drafting retaliatory tariffs totaling up to 93 billion euros, and is even considering restricting American companies from entering the European market. This transatlantic relationship is facing its most severe crisis in decades, also testing Europe’s security and the global trade order anew.

Greenland becomes a bargaining chip for the U.S., Trump applies tariffs to pressure allies

The dispute between Europe and the U.S. over Greenland’s sovereignty continues to escalate. Trump asserts that the U.S. has the right to take control of this Arctic island of high strategic value and is pressuring NATO allies who oppose the deal.

Over the weekend, he threatened to impose tariffs ranging from 10% to 25% starting February 1 on eight EU countries led by Denmark, citing their participation in military exercises in Greenland. An European diplomat stated that this exceeds traditional trade friction and constitutes naked political and economic coercion.

(U.S.-China tariffs just settled, Trump launches tariff war against Europe: if Greenland deal is not reached, 25% tariffs will be imposed)

EU enacts countermeasures: 93 billion euros in tariffs and ACI mechanism

The Financial Times reports that, facing pressure, the EU is evaluating two countermeasures. The first is to restart a 93 billion euro tariff list drafted last year but suspended to avoid escalating trade war; the second is to activate the “Anti-Coercion Instrument (ACI)” passed in 2023 but not yet implemented.

It is understood that the ACI measures will restrict American companies from entering the European internal market, potentially affecting services provided by large tech companies. France has already announced it will activate the ACI and is coordinating positions with Germany, but most member states prefer to de-escalate through dialogue.

The EU’s tough stance may reignite Greenland sovereignty disputes. Asian stock markets opened lower today, and safe-haven assets like gold and silver hit new record highs. Bitcoin rapidly dropped from 95K to 92K.

(Bitcoin falls to 92K, Trump reinitiates tariff war targeting Europe’s eight countries, safe-haven assets surge to record highs)

EU employs both soft and hard tactics, Davos Forum becomes a key stage

These countermeasures are seen as bargaining chips in Europe’s diplomatic negotiations rather than immediate actions. Trump is expected to hold critical talks with EU leaders during this week’s World Economic Forum, commonly known as the Davos Forum, including private discussions with European Commission President Ursula von der Leyen.

On Sunday, Leyen stated: “Europe will firmly uphold its commitment to maintaining the sovereignty of Greenland and the Kingdom of Denmark. We will always protect our strategic economic and security interests.”

European officials describe this strategy as “carrot and stick,” advocating calm and cooperation on one hand, while clearly demonstrating countermeasure capabilities on the other, giving Trump a way out.

Greenland sovereignty dispute stalls, negotiations attract global attention

Danish Prime Minister reiterated that Greenland’s sovereignty is non-negotiable, and the EU is preparing to convene an emergency summit to further coordinate positions. Several European officials worry that any rift in NATO relations could pose a serious threat to European security.

However, the U.S. remains firm. U.S. Treasury Secretary Scott Bessent publicly stated on Sunday: “Europe is too weak to ensure Greenland’s security.”

The President believes that unless Greenland becomes part of the U.S., its Golden Dome defense system cannot be perfected.

As the Davos talks approach, the outcome of these negotiations will also be closely watched.

This article, “EU to impose 93 billion euros in tariffs and corporate bans to counter Trump’s threats over Greenland,” first appeared on Chain News ABMedia.