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26 Mar 2026


EU pushes back against Trump tariff threats

Macron urges strong EU trade response as bloc backs Denmark in Greenland row

Tensions between the United States and the European Union have escalated after US President Donald Trump threatened to impose steep tariffs on several European countries amid a renewed dispute over Greenland. The move has drawn sharp criticism from major EU states, with French President Emmanuel Macron urging the bloc to prepare a strong and unified trade response.

Trump has warned that European nations opposing his interest in acquiring Greenland could face tariffs of up to 10 per cent from February, rising to 25 per cent by June if no agreement is reached. The countries named include France, Germany, the United Kingdom, Denmark, Sweden, Norway, the Netherlands and Finland. Denmark, which governs Greenland, has firmly rejected any suggestion of selling the autonomous territory, calling the proposal unacceptable.

Reacting strongly, President Macron said the tariff threat amounted to economic pressure and was “not the right way” to manage relations between allies. He called on the European Union to consider activating its Anti-Coercion Instrument (ACI), a powerful legal tool designed to respond to economic intimidation by external countries. Often referred to as the EU’s “trade bazooka,” the ACI would allow the bloc to impose counter-tariffs, restrict market access or take other trade measures in response.

Other major EU nations echoed Macron’s concerns. Germany, Spain and Italy condemned the U.S. move, warning that it could seriously damage transatlantic ties and destabilise global trade. European leaders stressed that Greenland’s status is not negotiable and reaffirmed their support for Denmark’s sovereignty.

EU officials said emergency discussions were held in Brussels to assess possible responses, including retaliation if the U.S. follows through on its tariff threats. While some leaders called for calm and dialogue to avoid a trade war, others made it clear that the EU would not hesitate to act if its members were targeted unfairly.

The dispute has also raised concerns about broader economic fallout, as higher tariffs could affect industries ranging from automobiles to agriculture. Analysts warn that escalating trade tensions between long-standing allies could hurt businesses and consumers on both sides of the Atlantic.

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