EU weighs trade weapon against US — Politico
Photo: Meeting of EU leaders (Getty Images)
Germany will ask the European Commission to explore the possibility of using trade weapons against the US at the EU leaders' summit in Brussels on Thursday, January 22, Politico reports.
Citing five diplomats, the agency writes that US President Donald Trump's encroachment on Greenland has prompted EU capitals to strengthen their position on Europe's response.
"The resolve has been there for a few days," one of the sources emphasizes.
Trade weapons or trade bazookas are one of Europe's main levers against the US, which include a wide range of possible measures, such as imposing tariffs, restricting exports of strategic goods, and excluding US companies from tenders.
What EU countries will demand from the European Commission will depend largely on Trump's speech at the World Economic Forum in Davos on Wednesday, January 21. Some European leaders want to arrange a meeting with the US leader to convince him to abandon the tariffs, but they are also preparing for him to carry out his threats.
"We have felt it in our bilateral talks ... there is very broad support that the EU must prepare for all scenarios, and that also includes that all instruments are on the table," one diplomat says.
Imposing retaliatory tariffs
In addition to the trade bazooka, European leaders are also considering a package of retaliatory measures that would impose tariffs on US exports worth €93 billion. According to two diplomats, tariffs may be imposed first, followed by a more complex process of introducing trade weapons.
"There is a convergence with the Germans, there’s an awakening on their part, that we have to stop being naive," says the French official.
French President Emmanuel Macron supports the use of the trade bazooka, but other European capitals are more cautious due to the risk of further measures by the US and the consequences for their economies. The EU had already considered using it in 2025 when Trump imposed unilateral tariffs, but Europe backed down at the time.
The use of trade weapons requires the support of at least 15 countries in the European Council.
Diplomats are hoping that Italian Prime Minister Giorgia Meloni will join the initiative. Italy is currently showing a willingness to continue negotiations with the US on de-escalation, while the position of another potential ally, Poland, remains unclear.
Trump's tariffs
On Saturday, January 17, Trump announced that starting February 1, Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland will pay a 10% tariff on all goods supplied to the US, and starting June 1, the rate will increase to 25%.
The US President stressed that the tariffs will remain in effect until an agreement is reached on the complete and final purchase of Greenland.
