January 19, 2026 – European Union leaders are preparing a robust response to U.S. President Donald Trump’s latest tariff threat, weighing the revival of roughly €93 billion ($108 billion) in retaliatory levies on American goods. The move reflects growing frustration in Brussels over what some officials describe as coercive tactics that could destabilise transatlantic trade ties.
Trump’s decision to impose new tariffs starting with a 10% duty on imports from eight European nations on Feb. 1, potentially rising to 25% by June 1, stems from a dispute over Greenland, where NATO allies have deployed troops for joint exercises. The United States has framed the tariffs as leverage in talks about the island’s strategic future, a position European leaders have strongly rejected.
EU ambassadors met in Brussels over the weekend to discuss retaliatory options, including reactivating a suspended tariff package targeting U.S. exports worth about €93 billion. That package was initially devised in response to earlier U.S. trade actions but was put on hold after a bilateral deal last year.
Diplomats described the deliberations as unusually tense, with some EU capitals pushing for swift action to signal that Washington’s approach is unacceptable. French President Emmanuel Macron is among those advocating the use of the bloc’s “anti-coercion instrument,” a powerful but untested trade tool that could extend beyond tariffs to restrictions on investment and access to the single market.
Yet not all EU members are aligned. Officials from several countries have cautioned that escalating a trade war with the U.S. could backfire, especially as Europe’s export‑reliant industries already face headwinds. The debate highlights a broader strategic dilemma: whether to prioritise diplomatic calm with a key security partner or push back forcefully against what many see as economic brinkmanship.
With an emergency summit on the agenda, Brussels now must balance solidarity with caution, a defining moment in U.S.–EU trade relations.
