EU Counters Greenland Tariff : US President Donald Trump’s aggressive policy and threats of tariffs regarding Greenland have united Europe in an unprecedented manner. The European Union and its major member countries have made it clear that they will neither yield to pressure nor tolerate any kind of economic blackmail. This US-Europe dispute is no longer limited to mere rhetoric or diplomatic differences, rather its signs are pointing towards a global trade war and deep strategic conflict.
The situation has become serious after Donald Trump threatened European countries with tariffs regarding Greenland. European countries have called it dictatorship and except Germany, most of the people have said the same thing that this is blackmailing and it is necessary to answer. All the countries together have issued a joint statement that this is not acceptable in any way.
Europe stands against Trump’s threat
8 countries issued a joint statement saying that such threats weaken the foundation of trans-Atlantic relations and can push the situation towards a dangerous conflict. European leaders believe that exerting pressure on fundamental issues like sovereignty is not only unacceptable but also risky for the international order.
- Trump has said that a 10% tariff will be imposed on goods coming from these European countries from February 1, which will be increased to 25% from June 1.
- Unless the US is allowed to purchase Greenland, heavy tariffs will be imposed on Denmark, France, Germany, Sweden, the Netherlands, Finland, Britain and Norway.
- After this announcement by Trump, the European Union has become active. Ambassadors of all countries held an emergency meeting in Brussels, the capital of Belgium and decided to stand against this blackmailing.
Europe will impose tariffs against America
France is at the forefront among the countries opposing America. The French President is taking steps which have not been tried before. According to news agency Reuters, the European Union can also impose retaliatory tariffs on America from February 6.
According to the report of Financial Times, European countries are also thinking of imposing tariffs of up to 93 billion euros (about 108.71 billion dollars) on America or taking steps like excluding American companies from the European market.
Reports suggest that the World Economic Forum being held in Davos, Switzerland may also take decisions that can be used to put pressure on Trump.
Preparations are underway for ‘Trade Bazooka’
France appears to be at the forefront of this entire incident. According to sources close to President Emmanuel Macron, France is demanding the first tough step from the European Union, which is being called Europe’s ‘trade bazooka’. Under this, retaliatory duty can be imposed on goods worth about 93 billion euros imported from America. Not only this, this mechanism also gives Europe the right to impose restrictions on American companies’ public tenders, investment opportunities, banking activities and even in the service sector. The special thing is that America has a surplus with Europe in services trade, which is being considered an important weapon of pressure.
Europe is giving a direct message to America
Danish Prime Minister Mette Frederiksen said the same strong messages were coming from across the continent that Europe cannot be intimidated or blackmailed. The impact of this conflict is also visible on Europe-America trade relations. The European Parliament no longer appears to be in favor of moving forward on the EU-US trade deal. However, Europe is not completely in unison. Ireland is not in favor of retaliatory tariffs, while Italy, despite being close to America, considers Trump’s tariffs wrong.
