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Trump’s Greenland Tariff Threat Sparks EU Unity, Trade Deal in Jeopardy

U.S. President Donald Trump's threat to impose escalating tariffs on eight European countries unless Denmark agrees to sell Greenland has triggered a unified backlash from EU leaders, casting uncertainty over the future of the 2025 EU-U.S. trade agreement. The move, announced via social media on January 17, 2026, has been labeled "economic coercion" by Nordic and EU officials, who are now rallying for bloc-wide countermeasures.

Nordic Leaders Condemn 'Unacceptable' Measures

Danish Foreign Minister Lars Lokke Rasmussen expressed shock at the threat, emphasizing close coordination with the European Commission. Norwegian Prime Minister Jonas Gahr Støre called the tariffs "unacceptable," reaffirming support for Denmark's sovereignty. Swedish Prime Minister Ulf Kristersson denounced the move as "blackmail," urging an EU-level response.

EU Weighs Anti-Coercion Instrument Activation

European Commission President Ursula von der Leyen and European Council President Antonio Costa warned the tariffs risk a "dangerous downward spiral" in transatlantic relations. Bernd Lange, chair of the European Parliament's trade committee, urged immediate activation of the EU's Anti-Coercion Instrument, calling Trump's threat a "new dimension" in trade weaponization.

2025 Trade Truce at Risk

The crisis has stalled progress on the EU-U.S. tariff agreement finalized in July 2025, with European Parliament leaders suspending related legislative work. Cyprus, holding the EU presidency, convened an emergency meeting on January 18 to coordinate countermeasures ahead of the February 1 tariff deadline.

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