The diplomatic waters between the US and Europe are getting turbulent, and the unlikely catalyst? Greenland. US President Donald Trump recently threatened new import taxes on European nations opposing his bid to acquire Greenland. This move, which followed the deployment of troops to Greenland by several EU nations, has been met with fierce criticism across the Atlantic. European leaders from Denmark to France issued a joint statement warning that such tariff threats could “seriously damage relations” and risk a “dangerous downward spiral,” with some officials directly labeling it “blackmail.”
In response, top EU diplomats swiftly held crisis talks. They are considering dusting off a previously suspended plan to impose billions of euros worth of counter-tariffs on US goods. This package, if activated, would target key American exports like cars, industrial products, as well as food and drink.
But there’s an even bigger tool in the EU’s arsenal: the Anti-Coercion Instrument (ACI), often dubbed the bloc’s “big bazooka.” This powerful, never-before-used law allows the EU to impose sweeping economic measures against countries attempting to force policy changes through financial pressure. French President Emmanuel Macron reportedly urged fellow leaders to consider activating it if Washington followed through on its tariff threat.
Despite the strong words and potential for retaliation, the EU remains somewhat divided on immediate action. While European Council President António Costa announced readiness to “defend ourselves against any form of coercion,” many officials still prefer dialogue with Washington. The counter-tariff package, for instance, remains officially suspended for now. This suggests a desire for diplomatic solutions even as the threat of an escalating trade war looms large, all stemming from a frosty dispute over Greenland’s future.
