The European Union is poised to unleash a trade counterpunch that could hit the U.S. economy hard. Financial Times sources indicate Brussels is weighing 93 billion euros in tariffs on American products or outright exclusion of U.S. firms from EU markets—all sparked by U.S. tariff warnings over Greenland.
With Davos meetings on the horizon, EU insiders are scrambling to finalize response strategies. These will equip European heads of state for tough negotiations with Donald Trump at the World Economic Forum, ensuring they negotiate from strength.
The blueprint for retaliation dates back to last year, paused until February 6 to sidestep broader conflict. But surging frictions over Greenland led to Sunday’s huddle of EU reps, debating reimplementation. Xinhua reports discussions on restrictive laws against U.S. market entry.
In a show of unity, the directly impacted octet—Denmark, Finland, France, Germany, Netherlands, Norway, Sweden, UK—released a collective pledge standing shoulder-to-shoulder with Denmark and Greenland.
Trump’s weekend tweetstorm set the stage: 10% levies from February 1 on imports from these nations, escalating to 25% on June 1 unless Greenland’s ‘complete purchase’ is secured.
Expect intense sidebar talks in Davos as Trump rubs shoulders with EU heavyweights like Ursula von der Leyen. His schedule might extend to Ukraine-focused sessions with Western allies.
Observers see this as a test of transatlantic bonds. Can Davos diplomacy defuse the bomb, or will tit-for-tat tariffs ignite a damaging spiral? Global markets hang in the balance.