The European Union is contemplating imposing tariffs worth 93 billion euros ($107.68 billion) on the United States or restricting American companies from its market. This move is a response to US President Donald Trump’s tariff threats related to Greenland, as reported by the Financial Times. The EU is preparing these retaliatory measures to strengthen its position ahead of crucial meetings with Trump at the World Economic Forum in Davos.
According to officials familiar with the matter, the EU had already formulated a list of tariffs last year but had postponed its implementation until February 6 to prevent a trade war. However, in light of the escalating tensions over Greenland, EU member representatives discussed activating these measures on Sunday. They also deliberated on utilizing the Anti-Coercion Instrument, which could potentially limit US firms’ access to the EU market, as per Xinhua news agency.
Following the US’s announcement of imposing tariffs on eight countries, including Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom, these nations expressed solidarity with Denmark and Greenland. Trump had declared a 10% tariff on goods from these countries starting February 1, with a warning that it could increase to 25% by June 1, remaining until an agreement is reached for the purchase of Greenland.
As Trump prepares to attend the World Economic Forum, where he is scheduled to engage in private discussions with European leaders like European Commission President Ursula von der Leyen, tensions between the US and the EU continue to rise. The upcoming meetings are crucial in determining the future of trade relations between the two economic powers.
