The European Union (EU) is actively considering the deployment of its “trade bazooka,” formally known as the Anti-Coercion Instrument (ACI), in response to newly announced tariffs by US President Donald Trump. This potential move follows Trump’s declaration of new duties targeting European nations that have expressed support for Greenland.
US Tariffs Spark Transatlantic Tension
President Trump announced that a 10 percent tariff would be levied on imported goods from Denmark, Finland, France, Germany, Netherlands, Norway, Sweden, and the United Kingdom, effective February 1. He further warned that these tariffs could escalate to 25 percent by June 1 if no resolution is reached regarding Greenland. Trump underscored the strategic importance of Greenland to US security and did not rule out the use of force. These tariffs are presented as a direct reaction to European countries supporting Greenland’s position.
The US decision rapidly intensified diplomatic strains, prompting an emergency meeting of European representatives in Brussels on Sunday. French President Emmanuel Macron reportedly stated after the meeting, “Now is the time for the EU to use its ‘trade bazooka’ for the first time.” The ACI is designed to bolster the EU’s defense capabilities against economic pressure from non-EU countries.
EU’s Potential Retaliatory Measures
Under the Anti-Coercion Instrument, the EU could implement several counter-measures against the United States. These include imposing retaliatory tariffs, restricting US companies’ access to the European single market, and preventing US firms from securing significant EU contracts. Officials indicate that the “trade bazooka” would not be limited solely to tariffs but could also encompass export controls and additional sanctions, aiming to signal the EU’s commitment to defending its economic and political interests.
Furthermore, the EU may consider activating previously announced retaliatory tariffs amounting to 93 billion Euros, which were deferred due to a provisional trade agreement with the US in July 2025. European diplomatic sources have characterized the current situation as unprecedented, noting that prior disputes with the US had not triggered such decisive action. Future steps depend on US-EU discussions, but European leaders have indicated readiness for immediate action if the US proceeds with or escalates its tariff threats.
In solidarity, eight European nations issued a joint statement on Sunday, affirming their support for Greenland and Denmark. The statement highlighted shared security interests in the Arctic and a collective commitment to enhancing Arctic security as a transatlantic priority among these NATO member countries.
Prominent European leaders have voiced criticism of Trump’s actions. European Council President Antonio Costa asserted that the EU would take a firm stance in upholding international law. European Commission President Ursula von der Leyen cautioned that the tariffs would detrimentally affect EU-US relations. UK Prime Prime Minister Keir Starmer also criticized Trump, stating that using tariffs against NATO allies concerning Greenland is inappropriate and could destabilize transatlantic relations. A Downing Street statement emphasized that security in the High North is a priority for all NATO allies, and imposing tariffs on allies contributing to collective NATO security is unjustifiable.
 in response to US President Trump's new tariffs on European nations over Greenland, escalating transatlantic trade tensions.){kind=link}