EconomyInternational Relations

EU states condemn Trump tariff threats, consider countermeasures

Major European Union states decried U.S. President Donald Trump’s tariff threats against European allies over Greenland as blackmail on Sunday, as France proposed responding with a range of previously untested economic countermeasures.

Trump vowed on Saturday to implement a wave of increasing tariffs on EU members Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, until the U.S. is allowed to buy Greenland.

All eight countries, already subject to U.S. tariffs of 10% and 15%, have sent small numbers of military personnel to Greenland, as a row with the United States over the future of Denmark’s vast Arctic island escalates.

“Tariff threats undermine transatlantic relations and risk a dangerous downward spiral,” the eight-nations said in a joint statement published on Sunday.

They said the Danish exercise was designed to strengthen Arctic security and posed no threat to anyone. They said they were ready to engage in dialogue, based on principles of sovereignty and territorial integrity.

Danish Prime Minister Mette Frederiksen said in a written statement that she was pleased with the consistent messages from the rest of the continent, adding: “Europe will not be blackmailed”, a view echoed by Germany’s finance minister and Sweden’s prime minister.

“It’s blackmail what he’s doing,” Dutch Foreign Minister David van Weel said on Dutch television of Trump’s threat.

A source close to French President Emmanuel Macron said he was pushing for activation of the “Anti-Coercion Instrument”, which could limit access to public tenders, investments or banking activity or restrict trade in services, in which the U.S. has a surplus with the bloc, including digital services.

Bernd Lange, the German Social Democrat who chairs the European Parliament’s trade committee, and Valerie Hayer, head of the centrist Renew Europe group, echoed Macron’s call, as did Germany’s engineering association.

Meanwhile, 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 anti-coercion instrument.

In the meantime, Cyprus, holder of the rotating six-month EU presidency, summoned ambassadors to an emergency meeting in Brussels on Sunday, which diplomats said was due to start at 5 p.m. (1600 GMT) as EU leaders stepped up contacts.

Source
Reuters

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