EU Plans Massive Retaliatory Tariffs Against US Amid Greenland Trade Dispute

The European Union is preparing to respond to escalating trade tensions with the United States by considering retaliatory tariffs valued at approximately 93 billion euros (around 997 billion kronor). This move follows threats from former US President Donald Trump, who warned eight EU countries of tariffs for their support of Denmark in the Greenland crisis.

An emergency EU summit is scheduled for Thursday to discuss coordinated measures, including this potential tariff retaliation and broader collective strategies to counter US trade policies. EU leaders are also exploring options that could restrict American companies’ operations within Europe to bolster their negotiating power ahead of anticipated meetings with Trump at the World Economic Forum in Davos.

Swedish Prime Minister Ulf Kristersson stressed the importance of a calm and unified response, emphasizing that the EU should avoid a full-scale trade war. While warning of a possible tariff spiral leading to a trade conflict, Kristersson highlighted that the EU remains the world’s largest trading bloc and prefers to use its economic strength to promote free trade rather than engage in protectionism. He stated, “One can imagine a spiral occurring if the USA decides to raise tariffs against us.”

Magdalena Andersson, leader of the Swedish Social Democrats, called for a firm and united European reaction to Trump's threats, noting there is "no room for weakness." She expressed concerns that US tariffs could hamper Sweden's economic recovery and urged the government to prepare for potential impacts. Andersson condemned Trump's approach as irresponsible and counterproductive, remarking that collaboration with allies rather than provocation would benefit all except adversaries like Putin.

The EU emergency summit, announced by European Council President Antonio Costa, will focus on collective support for Denmark and Greenland and assess the fallout from US tariff threats. Sweden acknowledges the gravity of the situation, but officials remain hopeful for a diplomatic solution to the Greenland crisis and wider trade frictions.