Trump Announces 10% Tariffs on Eight European Allies President Trump declared a 10 % duty on imports from Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the United Kingdom effective February 1, with a clause to raise the rate to 25 % on June 1 if no Greenland purchase deal is reached [1][2]. The tariffs target goods from the eight nations as leverage in the U.S. demand to acquire Greenland, a move that could increase consumer prices and strain transatlantic trade [1][2]. Trump warned the higher duty would remain until a “complete purchase” of Greenland is secured [1].

EU Considers Activating Anti‑Coercion Instrument European leaders, including French officials and French President Macron, have urged the European Union to ready its Anti‑Coercion Instrument, a mechanism created in late 2023 to counter economic pressure [1][2]. The Commission confirmed the tool remains on the table and could block U.S. market access or impose export controls, though analysts note deployment could take months [2]. Although originally designed to address China, the EU is debating its use against a close ally amid the tariff dispute [2].

Potential Retaliatory Tariffs Could Reach €93 Billion EU officials discussed reinstating €93 billion ($108 billion) of previously announced retaliatory tariffs against the United States, which were paused during a tentative trade truce [2]. If activated, these measures would target a broad range of U.S. exports, heightening uncertainty for American businesses and investors [2]. The scale of the possible retaliation underscores the seriousness of the diplomatic standoff over Greenland [2].

Allied Nations Warn of Economic Spiral and Maintain Dialogue The eight affected European countries issued a joint statement cautioning that the U.S. tariffs risk a dangerous downward spiral for global trade [1]. The United Kingdom, led by Prime Minister Keir Starmer, pledged not to retaliate and emphasized daily communication with Washington to preserve constructive relations [1]. Greenland’s prime minister, Jens‑Frederik Nielsen, rejected external pressure, reaffirming the territory’s stance on the sovereignty issue [1].

Market Uncertainty Rises as Trade Tensions Escalate Economists warn that the 10 % tariffs could raise import prices in both the United States and Europe, potentially dampening economic growth [2]. The prospect of the EU’s anti‑coercion response adds further volatility, as businesses await clarification on the timeline and scope of any countermeasures [2]. Investors monitor the situation closely, noting that prolonged uncertainty may affect $108 billion worth of pending U.S.–EU trade and tax negotiations [1].