EU Weighs “Big Bazooka” Retaliation as Trump Demands Greenland Purchase

BRUSSELS — The European Union’s highest diplomats convened an emergency session in Brussels on Sunday to finalize a strategy for what one official described as an “existential crisis” for the transatlantic alliance. The meeting followed an extraordinary ultimatum from U.S. President Donald Trump, who on Saturday vowed to impose a sweeping 10% tariff on eight European nations unless they facilitate the American purchase of Greenland.

The proposed “Greenland Tax” would target Denmark, France, Germany, the United Kingdom, the Netherlands, Finland, Norway, and Sweden. According to the President’s announcement on Truth Social, the duties would rise to 25% by June 1, remaining in place until a deal for the “Complete and Total purchase” of the world’s largest island is secured.

A “Dangerous Downward Spiral”

In a rare show of unified defiance, the eight targeted nations issued a joint statement Sunday evening, warning that the move would “undermine transatlantic relations and risk a dangerous downward spiral.”

French President Emmanuel Macron led the rhetorical charge, telling reporters in Paris that Europe would not be moved by “intimidation or threats.” Similarly, British Prime Minister Keir Starmer labeled the tactic “completely wrong,” emphasizing that Greenland’s future is a matter solely for the Greenlandic people and the Kingdom of Denmark.

The friction is not merely over real estate. The tariff threat was triggered by the recent deployment of European troops to Greenland for “Arctic Endurance,” a security exercise. While Europe frames the move as a necessary response to Arctic security concerns, President Trump characterized it as a “very dangerous game” by allies who should instead be under the “U.S. security umbrella.”

The “Big Bazooka” on the Table

Diplomatic sources in Brussels indicate that the EU is preparing a two-pronged retaliation. The most immediate measure is the reactivation of a suspended package of counter-tariffs on approximately €93 billion ($108 billion) of American goods. These tariffs were originally drafted during previous trade skirmishes but were shelved after a tentative trade deal last summer—a deal that now appears to be in tatters.

Furthermore, France and several other member states are pushing for the activation of the Anti-Coercion Instrument (ACI), often referred to as the EU’s “trade bazooka.” This powerful legal tool, originally designed to counter economic pressure from China, would allow the bloc to:

• Restrict American companies’ access to EU public tenders.
• Limit U.S. investment in key European sectors.
• Impose sanctions on digital services, where the U.S. maintains a significant trade surplus.

“Europe will not be blackmailed,” stated Danish Prime Minister Mette Frederiksen. She noted that while Denmark is willing to discuss Arctic security, Greenland’s sovereignty is non-negotiable.

Global Ramifications

The escalating tension has sent shockwaves through NATO and global markets. Kaja Kallas, the EU’s top diplomat, warned that the fracturing of the West would only benefit adversaries. “China and Russia must be having a field day,” she remarked on X (formerly Twitter), suggesting that the dispute over a “land grab” is distracting from legitimate security threats in the High North.

The timing is particularly sensitive, as European leaders are set to travel to the World Economic Forum in Davos this week. Many officials hope the threat of the €93 billion tariff package will provide the necessary leverage to find a diplomatic “off-ramp” before the February 1 deadline for the first wave of U.S. duties.

However, the path to de-escalation is narrow. Within the U.S., the Trump administration remains firm. Treasury Secretary Scott Bessent defended the move on Sunday, asserting that European allies would eventually “come around” to the necessity of American control over Greenland for the sake of global stability.

As the sun set over Brussels, the European Council announced an extraordinary summit of all 27 heads of state for later this week to formalize the retaliation plan. For now, the “special relationship” between Washington and its oldest allies faces its most severe test in decades.

Sources & Links:

• The Guardian: Trump news at a glance: European leaders condemn threat of tariffs over Greenland
• CBS News: Europeans reeling as Trump threatens tariffs on 8 countries over Greenland dispute
• The Washington Post: European nations weigh retaliation after Trump’s Greenland threats
• The Financial Times: EU mulls $108B retaliatory tariffs on US over Trump’s Greenland threat
• Reuters: EU weighs $108 billion in retaliatory tariffs on US over Trump’s Greenland threat