It is preparing to impose a hefty set of tariffs worth 93 billion euros ($107.71 billion) on the U.S. after its threats on Saturday, according to a report in the Financial Times.
The EU is also considering barring US companies from the European market in response to the threats, the FT report said.
Brussels hopes the measures, discussed during a meeting of EU ambassadors on Sunday, will give European leaders leverage in crucial meetings with Trump at the World Economic Forum in Davos this week.
It comes after the eight European countries at risk of US tariffs – Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and Britain – warned that Trump’s threat of tariffs would “undermine transatlantic relations and risk a dangerous downward spiral”, in a joint statement that backed Greenland.
“We are committed to strengthening the security of the Arctic as a common transatlantic interest,” the statement added.
British Prime Minister Keir Starmer held a phone call with Trump on Sunday, during which he told the US president that “the imposition of tariffs on allies who seek,” according to Downing Street.
The retaliatory measures are being drawn up to give European leaders an edge in crucial meetings with Trump at the World Economic Forum in Davos this week, the Financial Times reported, citing officials involved in preparations for the meetings in Switzerland.
“The message is the carrot and the stick”
A European diplomat has said the EU is taking a “carrot and whip” approach to Donald Trump following his threats to impose tariffs on Greenland.
As the Financial Times reports, the EU is preparing a series of tariffs worth 93 billion euros ($107.71 billion) to hit the US.
“There are clear means of retaliation if this continues… [Ο Τραμπ] he is using purely mafia methods,” a European diplomat briefed on the discussion told the FT.
“At the same time, we want to publicly call for calm and give him a chance to back down.”
“The message is … the carrot and the stick,” the diplomat added.
Compromise or rupture?
European countries are seeking a compromise that would prevent a rupture in the NATO military alliance.
The list of tariffs was drawn up last year but had been suspended until February 6 to avoid a trade war, the report said.
During a meeting of 27 EU ambassadors on Sunday, its reactivation was discussed. Diplomats also discussed the use of the anti-coercion instrument, which would limit US access to the EU market.
Source:
