93 billion euros of retaliation. The EU is preparing a “nuclear” response to Trump's tariffs

The European Union is in talks to impose tariffs worth EUR 93 billion on American goods if US President Donald Trump imposes 10 percent tariffs on European countries, Bloomberg reported on Monday. Trump has threatened to introduce these measures if no agreement is reached in the Greenland dispute.

Talks on this matter at the EU forum are scheduled for Thursday, the AFP agency reported, referring to the extraordinary meeting of the European Council scheduled for that day. The EU will first try to find a diplomatic solution, Bloomberg emphasized, citing people familiar with the matter.

Trump announced Saturday the introduction of 10% tariffs. for goods from eight European countries from February 1 and 25 percent. from June unless an agreement is reached on the “purchase of Greenland”. The American president directed this threat against eight countries that have declared their participation in symbolic military exercises on the island, which is an autonomous territory of Denmark. These are Sweden, Finland, Norway, Denmark, Great Britain, Germany, France and the Netherlands.

European leaders speak with one voice

British Prime Minister Keir Starmer condemned Trump's comments, calling them “completely wrong”, and the head of the Swedish government, Ulf Kristersson, assured that his country would not be “blackmailed”. French Prime Minister Emmanuel Macron, who called the threat “unacceptable”, announced that he plans to ask the EU to launch the most powerful tool of trade retaliation, the so-called instrument against economic coercion.

The President of the European Council, Antonio Costa, wrote on social media on Sunday that the Community countries unanimously support Denmark and Greenland and are ready to “defend themselves against all forms of coercion.”

The EU has suspended the processing of the trade agreement

The EU's immediate reaction to the threats was to suspend the proceedings of the trade agreement with the United States, which requires approval by the European Parliament. The European People's Party, the largest group in the European Parliament, said it would join other parties in blocking the ratification of the deal.

“President Trump has triggered an avalanche that threatens to destroy decades of transatlantic cooperation,” Stefan Loefven, president of the Party of European Socialists, said in a statement on Sunday.

Retaliatory tariffs are ready and waiting

The EU previously approved retaliatory tariffs on US products worth €93 billion, but suspended their implementation. They may be suspended if Trump carries out the threat of 10 percent tariffs, Bloomberg emphasized. The introduction of the full 25% tariffs may lead to a drop in exports to the US by up to half. Germany, Sweden and Denmark will be the most vulnerable – assessed the agency.

What is Anti-Coercion Instrument?

The Anti-Coercion Instrument (ACI) aims to protect EU countries against economic pressure. It is designed to deter and respond to deliberate actions by third countries using trade measures to influence the political choices of the EU or its members. Measures could include customs duties, new taxes for technology companies, limiting access to part of the EU market or hindering US access to public procurement.

– The Commission should immediately activate the ACI and the Council should authorize the imposition of countervailing duties on US imports, said Ignacio Garcia Bercero, a former senior European Commission official responsible for trade talks with the United States.

“If the EU is unable to show solidarity with Denmark and the attacked member states, it will lose all credibility and legitimacy,” he warned.

Bessent: Europe is weak

US Treasury Secretary Scott Bessent stated in an NBC program that the US president uses the so-called strategic leverage. – Europeans bring weakness, the US brings strength – he said on Sunday. – European leaders will change their minds and understand that they must remain under the American security umbrella – argued the head of the US Ministry of Finance. (PAP)

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