European Union ambassadors reached a general agreement on Sunday to step up efforts to persuade US President Donald Trump to abandon tariffs on European allies, while preparing retaliatory measures if the tariffs are imposed, European diplomats told Reuters.
Trump vowed on Saturday to implement a series of tariff increases starting Feb. 1 for EU member states Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, until the US is allowed to buy Greenland, a move that major European Union states have branded blackmail.
EU leaders are to discuss available options at an emergency summit in Brussels on Thursday. One option is a package of tariffs worth 93 billion euros on US imports, which could automatically take effect on February 6 after a six-month suspension.
The other option is the “anti-coercion tool”, which has not been used so far and could limit access to public auctions, investment or banking activities or restrict trade in services where the US has a surplus with the EU bloc, including in digital services.
The tariff package appears to have wider support as a first reaction than the anti-coercion measures, where the situation is currently “very mixed”, according to an EU source.
Dialogue at Davos
European Council President Antonio Costa, who chairs EU summits, said in a social media post that his discussions with EU members showed their firm commitment to support Denmark and Greenland and their willingness to defend themselves against any form of coercion.
Danish Foreign Minister Lars Lokke Rasmussen, visiting his Norwegian counterpart in Oslo, said Denmark would continue to focus on diplomacy, referring to an agreement reached Wednesday between Denmark, Greenland and the US to establish a working group.
“The US is more than the president of the US. I've just been there. There's also a system of checks and balances in American society,” he added.
“All options are on the table”
EU dialogue efforts are likely to be a key theme at the World Economic Forum in Davos, where Trump is due to deliver a speech on Wednesday, his first appearance at the event in six years.
“All options are on the table, the Davos talks with the US and the leaders will meet afterwards,” said a European Union diplomat, summarizing the EU bloc's plan.
The eight targeted countries, which are already subject to US tariffs of 10% and 15%, have sent reduced numbers of military personnel to Greenland amid escalating conflict with the United States over the future of Denmark's vast Arctic island.
“Threats of tariffs undermine transatlantic relations and risk leading to a dangerous downward spiral,” they said in a joint statement issued on Sunday, adding that they were ready to engage in dialogue based on the principles of sovereignty and territorial integrity.
Danish Prime Minister Mette Frederiksen said in a written statement that she was encouraged by consistent messages from the rest of the continent, adding: “Europe will not be blackmailed.”
The threat of tariffs has unsettled global markets, with the euro and pound sterling falling against the dollar, with a return to volatility expected.
Question marks over US trade deals
A source close to French President Emmanuel Macron said he was pushing for the activation of the “anti-coercion tool”. Irish Prime Minister Micheal Martin said that while there should be no doubt that the EU would retaliate, it was “a bit premature” to activate the as-yet-unused tool.
Italian Prime Minister Giorgia Meloni, who is closer to the US president than other EU leaders, on Sunday described the threat of tariffs as “a mistake”, adding that she had spoken to Trump hours earlier and told him what she thought.
Asked how Britain would respond to the new tariffs, Culture Secretary Lisa Nandy said allies must work with the United States to resolve the dispute.
“Our position on Greenland is non-negotiable… It is in our collective interest to work together and not start a war of words,” she told Sky News on Sunday.
Threats of tariffs, however, call into question the trade deals the US struck with Britain in May and with the EU in July.
The limited deals have already been criticized for being unfair, with the US maintaining broad tariffs while its partners are required to eliminate import duties.
The European Parliament seems determined to suspend work on the EU-US trade agreement. It was due to vote on removing many of the EU's import taxes on January 26-27, but Manfred Weber, head of the European People's Party, the largest group in parliament, said late on Saturday that approval was not possible for now.
German Christian Democrat lawmaker Juergen Hardt also suggested in an interview with Bild newspaper that a last resort would be to “bring President Trump to reality on the Greenland issue,” namely boycotting the soccer World Cup that the U.S. is hosting this year.
