EU Tariffs: $108 Billion Retaliation & Denmark’s Stance

by Archynetys World Desk

EU capitals have entered discussions to implement tariffs of up to $108 billion on American products after President Trump posted his plan to levy new tariffs on Europe on Saturday. Trump said the US would implement 10% tariffs on eight European countries he says are getting in the way of a US purchase of Greenland.

The tariffs would begin Feb. 1 and apply to “any and all goods sent to” the US. The levies on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland would be raised to 25% on June 1 if no agreement is in place.

“China and Russia want Greenland, and there is not a thing that Denmark can do about it. They currently have two dogsleds as protection, one added recently,” Trump wrote. “Only the United States of America, under PRESIDENT DONALD J. TRUMP, can play in this game, and very successfully, at that!”

The countries — Denmark, Sweden, France, Germany, the Netherlands and Finland, Britain and Norway — are already subject to US tariffs between 10% and 15%.

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

Danish Prime Minister Mette Frederiksen praised the consistent message from the rest of the continent, saying “Europe will not be blackmailed,” a view echoed by Germany’s ⁠finance minister and Sweden’s prime minister.

US Treasury Secretary Scott Bessent was asked Sunday on NBC’s Meet the Press whether Trump’s stance toward Europe is a negotiating tactic. But Bessent seemed to indicate the president wouldn’t change his mind.

“Europeans project weakness, US projects strength,” he said. “The president believes enhanced security is not possible without Greenland being part of the US.”

On Saturday, protesters rallied in Denmark and Greenland, with thousands in Greenland’s capital city of Nuuk chanting “Kalaallit Nunaat” — the ‍island’s name in Greenlandic — as they marched to the U.S. embassy.

Meanwhile, the US Supreme Court’s first two opportunities to issue a verdict this year on the implications and legality of Trump’s global duties on trade partners have come and gone without a decision.

The Trump administration made appeals to the court last year, and in recent weeks, Trump has frequently expressed concern over the ruling.

“If the Supreme Court rules against the United States of America on this National Security bonanza, WE’RE SCREWED!” he wrote on social media.

Read more: What Trump promised with his ‘Liberation Day’ tariffs — and what he delivered

LIVE 45 updates

  • Americans bear almost all the cost of Trump tariffs

    A study, conducted by a German think tank, has concluded that American importers are paying almost entirely for President Trump’s tariffs on imported goods.

    Bloomberg news reports:

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  • Jenny McCall

    Trump links Greenland threats to Nobel Peace Prize snub

    President Trump has claimed in a letter to the Norwegian Prime Minister Jonas Gahr Stor that his desire to purchase Greenland is due to his not being awarded the Nobel Peace Prize.

    Trump initially said that his claims on Greenland related to reasons of national security; some have claimed it may be down to the natural minerals that the island has. But now it appears him being snubbed for the peace prize award last year is the real reason.

    Bloomberg News reports:

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  • Jenny McCall

    Europe can wield this $8T ‘sell America’ weapon as Trump reignites a trade war over Greenland

    As the EU weighs retaliatory measures against President Trump due to his 10% tariff threat, experts believe the EU’s greatest weapon in its arsenal may be its financial markets.

    Fortune reports:

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  • EU poses retaliation tariffs against US totaling $107B

    European capitals may hit the ​U.S. with 93 billion ‌euros ($107.71 billion) worth of tariffs ‌or restrict American companies from the bloc’s market in response to U.S. ⁠President Donald ‌Trump’s threats to NATO allies opposed to ‍his campaign to take over Greenland, the Financial Times reported ​on Sunday.

    The retaliation ‌measures are being drawn up to give European leaders leverage in pivotal meetings with Trump at the ⁠World Economic Forum ​in Davos ​this week, the FT report said, citing officials ‍involved ⁠in the preparations for the meetings in Switzerland.

    Read more here.

  • Bessent dismisses ‘weak’ Europe pushback on Trump plan to annex Greenland

    US Treasury Secretary Scott Bessent on Sunday dismissed European countries’ threat to nix a trade deal negotiated last year between the EU and the US as President Trump announced new tariffs to force a sale of Greenland to the US. Bessent made the remarks on NBC’s Meet the Press, Reuters reported:

    Read more here

  • ‘Europe will not be blackmailed’: countries consider countermeasures to new Trump tariffs

    To no one’s surprise, European Union states roundly condemned President Trump’s plan to implement new tariffs on eight European countries until the U.S. is allowed to buy Greenland. The countries — Denmark, Sweden, France, Germany, the Netherlands and Finland, Britain and Norway — are already subject to US tariffs between 10% and 15%, and have sent military personnel to Greenland in a show of support for the island, a territory of Denmark.

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

    Read more here

  • ‘The U.S.-EU trade war is back on’: Trump plan for new tariffs over Greenland set to jolt markets

    President Trump said Saturday that the US would impose 10% tariffs on eight European countries “until such time as a Deal is reached for the Complete and Total purchase of Greenland, effective Feb. 1. The tariffs would be raised to 25% if no agreement is in place by June 1, the president said.

    European leaders and the governments of Greenland and Denmark have strongly pushed back against Trump’s quest to acquire the Arctic island, with his latest focus on a purchase of the country, which is an independent territory of Denmark.

    Reuters reports that markets are beginning to react to the news, which threatens to upend a recent trade agreement between the EU and US.

    Read more here

  • Trump floats tariffs on countries that ‘don’t go along with’ Greenland takeover

    President Trump suggested on Friday that the US may impose new tariffs on countries that oppose a US acquisition of Greenland.

    “I may put on a tariff on countries if they don’t go along with Greenland because we need Greenland for national security,” Trump said at a roundtable event on healthcare (see clip below).

    Trump didn’t offer any specific details about what the tariff would look like and moved on from the topic to talk about healthcare instead.

    His comments follow tense talks between officials from the US and Denmark, which is responsible for Greenland’s defense, about the autonomous territory’s future.

    Trump has renewed his interest in taking control of Greenland following the US strike on Venezuela that removed its leader, Nicolás Maduro. “One way or the other, we’re going to have Greenland,” Trump said previously, noting that he’d prefer a negotiated settlement.

    Since the talks at the White House, NATO countries Germany, France, Sweden, and Norway have committed to sending military personnel to the island for what they have called a reconnaissance mission. Denmark’s foreign minister has said that Denmark and Greenland “still have a fundamental disagreement” with the US about control of the island.

  • Jenny McCall

    Taiwan touts ‘best tariff deal’ with US amid Beijing’s objections

    Taiwan’s Premier Cho Jung-tai praised the country’s new trade deal with the US, saying it’s the “best tariff deal” enjoyed by countries that sell more to the US than they buy. The Trump administration has targeted countries that tend to export more to the US than they import — in other words, have a large trade surplus.

    However, China is less than happy with the deal; Beijing views Taiwan as a Chinese territory and therefore opposes the latest agreement.

    Euronews reports:

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  • Jenny McCall

    Taiwan aims to be strategic AI partner in US tariff deal

    After reaching a deal to cut tariffs and boost its investment in the US, Taiwan aim’s to become a close strategic partner with the US in the area of AI, Vice Premier Cheng Li-chiun said on Friday.

    Reuters reports:

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  • Jenny McCall

    Canada, breaking with US, agrees to cut tariff on Chinese EVs in return for lower tariffs

    Canadian Prime Minister Mark Carney announced on Friday that Canada and China have reached a deal for Beijing to cut tariffs on its canola by March 1. This latest move between the two countries is a sign that the trade rift, which disrupted crop flows, is starting to thaw.

    In return, Canada agreed to cut tariffs on Chinese electric vehicles. Canada will allow up to 49,000 Chinese EVs at a tariff of 6.1%, Carney said after talks with Chinese leader Xi Jinping.

    This is the first visit from a Canadian prime minister since 2017, as Canada seeks to build its strategic alliances with the country’s second-largest trading partner after the US.

    It is also a sign that China may start to rebuild some of its strategic allies, while Canada may be breaking from the US.

    Bloomberg News reports:

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  • Jenny McCall

    White House says 25% semiconductor tariffs a ‘phase one’ action

    Reuters reports:

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  • Jenny McCall

    Lawmakers introduce bill to create $2.5B critical minerals stockpile

    Republicans and Democratic lawmakers have joined forces to introduce a bill that would create a $2.5 billion stockpile of critical minerals, such as rare earths, in a bid to stabilise market prices and encourage more domestic mining.

    The bill is Washington’s latest attempt to offset what policymakers view as China’s manipulation of prices for lithium, nickel, rare earths, and other critical minerals.

    It also comes shortly after China agreed to ease export restrictions on rare earth materials, as part of its one-year trade truce with the US.

    Reuters reports:

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  • Brett LoGiurato

    US, Taiwan reach trade deal to cut tariffs, boost investment

    The US and Taiwan reached a trade deal Thursday that will see tariffs cut between the nations, while the US said Taiwan would boost its investment in the US semiconductor industry.

    According to a fact sheet from the US Commerce Department, Taiwanese semiconductor companies invest $250 billion to boost financing in American operations. The Taiwanese government will also “provide credit guarantees of at least $250 billion” to the companies for additional investment, the US said.

    The department said the US “reciprocal” tariff rate on Taiwanese goods would drop to 15%, down from 20%.

    TSMC (TSM) looks likely to play a large role. More from Bloomberg:

    The deal was announced as Trump’s most sweeping tariffs still face judgment before the Supreme Court. If the high court rules against Trump’s levies, it could impede his ability to set “reciprocal” tariff rates, though other methods — like levying tariffs on certain sectors — look to be on firmer legal ground.

  • Jenny McCall

    South Korea to keep monitoring US chip tariffs to minimise impact

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  • Jenny McCall

    Trump holds off on critical minerals tariffs after probe

    President Trump announced on Wednesday that he will be opting out for now on imposing tariffs on rare earths, lithium, and other critical minerals. Trump has requested that his administration seek supplies from international trading partners.

    Precious metals such as silver (SI=F) retreated following a rally after the US said it would hold off from imposing tariffs on critical minerals.

    Earlier this week, US Treasury Secretary Scott Bessent held a G-7 meeting to discuss rare earth materials and to seek alternative suppliers to China, in a bid to reduce Western dependence on Beijing for the minerals.

    Bloomberg News reports:

    Read more here.

  • Jenny McCall

    Keep calm if Trump loses tariff case, trade expert urges nations

    Despite the lack of a tariff ruling from the US Supreme Court, one expert offers some advice to global nations waiting with bated breath for the verdict: “Calm.”

    Bloomberg News reports:

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  • Brett LoGiurato

    Trump imposes 25% tariff on certain advanced semiconductors

    Reuters reports:

    Here’s the full fact sheet.

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