France Seeks Tough EU Trade Response as Trump Escalates Greenland Dispute

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Brussels: French President Emmanuel Macron has urged the European Union to activate its Anti-Coercion Instrument widely described in Brussels as the bloc’s most potent trade “bazooka” in response to U.S. President Donald Trump’s threat to impose tariffs on European allies over the ongoing dispute involving Greenland.

 President Trump announced plans to levy additional import duties beginning Feb. 1 on goods from eight European countries including France, Germany, the United Kingdom, Denmark, and others unless progress is made on U.S. demands linked to Greenland, an autonomous Danish territory. The tariffs are set to start at 10 per cent and could rise to 25 per cent by June if no diplomatic solution is reached.

 Macron’s call comes amid an emergency gathering of European Union ambassadors in Brussels to discuss potential countermeasures. The Anti-Coercion Instrument, adopted in 2023 but never before used, gives the EU broad latitude to restrict access to its Single Market, impose retaliatory levies, curb exports, or limit public procurement access in response to economic coercion by non-EU nations.

 European leaders have strongly condemned Trump’s tariff threats, with several countries warning they could undermine transatlantic relations and trigger a “dangerous downward spiral.” Macron and other officials argue that deploying the trade “bazooka” would signal that the bloc will not yield to unilateral economic pressure, even from a long-standing partner.

 In addition to the Anti-Coercion Instrument, EU capitals are considering reviving a package of retaliatory tariffs on €93 billion ($108 billion) worth of U.S. products that was prepared under a previous trade dispute but suspended after a tentative deal last year. The debate reflects growing frustration among European policymakers at what they see as coercive tactics in a dispute over sovereignty and Arctic security.