BRUSSELS - A €93 billion tariff package is being readied by the European Union following a new threat from President Donald Trump concerning Greenland, in what appears to be a significant increase in tensions between the two sides of the Atlantic. This decision, which was disclosed by high-ranking EU officers, shows that there is an increasing irritation in Brussels because of what the leaders call economic blackmail and political gamesmanship from Washington.
The
planned tariffs, according to sources familiar with the matter, are intended to
cover various American exports such as industrial equipment, farming produce,
consumer goods as well as energy devices. This countermeasure has been
formulated so that it causes maximum pain economically and at the same time
targets politically important sectors of the American economy but remains
within the rules of the World Trade Organization.
The
standoff worsened when Trump hinted that the US could economically pressurize
Europe and Denmark again over Greenland’s strategic significance. Although
these comments have been portrayed by the White House as part of wider security
discussions, they are viewed by EU leaders as an intolerable provocation
crossing into trade bullying.
Why
Greenland Sparked a Trade Showdown
Greenland,
which is an autonomous territory under Denmark’s jurisdiction, boasts of its
rare earth minerals, Arctic shipping lanes and military positioning. The
American president’s remarks brought back memories about his failed attempt to
buy off this territory which had been strongly turned down by Copenhagen and
condemned throughout Europe.
According
to EU officials, this time around the talk goes beyond diplomacy. “It’s no
longer just theory,” commented a senior EU trade official. “When economic
threats are employed for geopolitical ends, Europe has to react firmly.”
The €93
billion figure was arrived at for tariffs so as to approximately equal the
possible economic effects of any American trade measures related to this
conflict under international trade laws.
Markets
and Businesses Brace for Fallout
Upon
learning about these plans for tariffs, both European and American markets were
seen taking precautionary measures. Sectors heavily reliant on exports on
either side of the Atlantic are preparing for increased costs, interrupted
supplies and fresh round of uncertainties.
Trade
analysts caution that exchanging full-blown tariffs could decelerate economic
growth at a juncture when global markets are grappling with elevated interest
rates and weak demand levels already. “Businesses are struggling enough at
present,” observed a Brussels-based economist. “But politically speaking,
neither side can afford to appear weak.”
A Test for
EU–U. S. Relations
This is
one of the most serious trade confrontations between EU and US since late 2010s
steel and aluminum disputes. Diplomatic talks continue behind closed doors but
EU officials claim they will not hesitate to take action should Trump act on
his words.