UPDATE: European leaders are gearing up for a significant economic response against the United States as tensions escalate over U.S. tariff threats and plans to acquire Greenland. An urgent meeting is scheduled for Thursday, July 15, 2025, where EU officials will discuss implementing an untested economic measure dubbed the “trade bazooka.”
This potential action comes in response to President Donald Trump’s aggressive push for Greenland, which has sparked fierce opposition from European nations. In retaliation for the backlash, Trump threatened to impose higher tariffs on countries openly resisting his agenda, including Britain, Denmark, Finland, France, Germany, the Netherlands, Norway, and Sweden.
The proposed measure, known officially as the Anti-Coercion Instrument, aims to protect EU interests against perceived U.S. coercion. If enacted, it could impose stringent import and export restrictions targeting American companies, severely limiting their access to EU markets. Additionally, U.S. firms may be barred from bidding on government contracts across the EU.
German Chancellor Friedrich Merz stated, “We have a set of instruments at our disposal, and we agree that we do not want to use them. But if we have to use them, then we will.” His comments underscore the seriousness of the EU’s stance, especially as France expresses readiness to take action.
“Until the threats are over, there will be no possibility for compromise,” said Bernd Lange, chair of the European Parliament’s trade committee, highlighting the urgency of the situation.
However, any punitive measures will not be immediate. The EU’s procedural rules require an investigation into claims of coercion that could take up to four months, followed by several weeks for a decision on whether to act. This timeline could delay any significant impact on U.S. businesses.
In a related development, the European Parliament moved to block a proposed trade deal with the U.S. due to Trump’s tariff threats. A preliminary agreement, reached in July, is now cast into uncertainty following this decisive action.
At the World Economic Forum in Davos, Switzerland, Trump reiterated his ambitions regarding Greenland, stating, “It’s the United States alone that can protect this giant, massive land.” He emphasized the strategic importance of Greenland for both U.S. and European security, framing the acquisition as a matter of national interest.
Trump’s remarks have escalated tensions further, suggesting that Europe must choose between cooperation and a strained relationship. “You can say yes and we will be very appreciative, or you can say no and we will remember,” he warned.
As the situation unfolds, all eyes will be on the EU’s response and the implications for transatlantic relations. The meeting on Thursday will be crucial in determining whether the EU will activate its “trade bazooka” and how this will affect the global economic landscape.
This developing situation will be monitored closely, with potential repercussions for international trade and diplomatic relations between the U.S. and Europe. Stay tuned for updates as this story develops.
