Background
Tensions between the United States and the European Union have intensified after President Trump announced, in a January 17, 2026, social media post that the United States will impose tariffs of 10% from February 1 and 25% from June 1 on Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom, unless a deal is reached for the “complete and total purchase of Greenland.”
Tariffs Threatened by the United States
The threatened U.S. tariffs are not self-executing and are not currently in place. Given the timeline mentioned, President Trump would likely seek to impose such tariffs pursuant to the International Emergency Economic Powers Act (“IEEPA”), which requires the president to declare a national emergency involving an “unusual and extraordinary threat” to national security originating outside the United States. President Trump has argued publicly that Greenland is essential for U.S. national security due to Chinese and Russian threats in the Arctic, suggesting a possible basis for an emergency declaration.
The ability of the Trump Administration to impose the threatened tariffs may be impacted by the scope of the Supreme Court’s decision on the IEEPA tariffs previously imposed based on declared national emergencies pertaining to (1) migrant flows from Mexico and Canada and fentanyl imports from Mexico, Canada, and China and (2) trade deficits between the United States and other countries. If the Supreme Court were to rule broadly that IEEPA does not provide for the authority to impose tariffs, the Trump Administration could try to impose such tariffs under different legal authorities which require a prior investigation by relevant U.S. authorities.
Possible EU Reaction
EU officials reaffirmed that territorial questions involving Denmark and Greenland fall strictly within the competence of the Danish Realm. Several European leaders among Germany’s chancellor Friedrich Merz, France’s President Emmanuel Macron and Denmark’s Prime Minister Mette Frederiksen emphasized that leveraging trade measures to influence sovereign decision‑making is incompatible with the expectations governing relations among allies.
The EU Commission has also confirmed its readiness to re‑activate a €93 billion retaliatory tariff package, that was originally suspended following the July trade deal with the United States. This mechanism would allow the EU to respond proportionately to the possible tariffs imposed by the United States. Reporting indicates that the European Parliament is planning to suspend approval of the July trade deal.
Additionally, the EU is exploring the possibility to use the so-called Anti‑Coercion Instrument (“ACI”), EU Regulation 2023/2675.
ACI Summary
The ACI enables the EU to take action in cases of economic coercion of the EU or its Member States by non-EU countries. The objective is to deter coercion, and if necessary, to respond to it.
“Economic coercion” can be defined as a situation whereby a third country seeks to pressure the European Union or an EU Member State into making a particular choice by applying, or threatening to apply, measures affecting trade or investment.
The ACI requires the EU to open discussions with the third country before adopting any countermeasures. Only if negotiations do not lead to a resolution, the EU may proceed with targeted measures, ensuring proportionality in relation to international trade rules.
Possible EU Measures Under the ACI (Annex 1, EU Regulation 2023/2675)
If the ACI is activated, the EU may adopt a range of calibrated responses, including:
- Restrictions on access to EU public procurement tender procedures;
- Limitation of foreign investments originating from the coercing country;
- Suspension or modification of intellectual property protections;
- Introduction of new tariff or quota measures;
- Restrictions on the access by banking and insurance entities to EU capital markets;
- Restrictions on cross‑border supply of services;
- Restriction on placing certain goods in the EU marketplace (e.g., chemicals, sanitary and phytosanitary goods).
Conclusion
The EU has made its position clear: it will defend the sovereign rights of Denmark and Greenland, protect the autonomy of its decision‑making processes, and preserve the stability of transatlantic trade relations.
The potential reactivation of €93 billion in retaliatory tariffs and the possible application of the ACI provide the EU with a significant legal and strategic instruments to counter possible new tariffs from the United States.
