The United States is on the verge of reigniting last year’s trade war with Europe after President Donald Trump threatened eight European countries with tariff hikes over Denmark’s refusal to sell Greenland.
A trade deal Trump secured in July of last year with European Commission President Ursula von der Leyen is unlikely to move forward after Trump on Saturday threatened 25% tariffs against eight EU countries, as well as the United Kingdom and Norway.
The European People’s Party is the most influential bloc in the European parliament, holding 188 of 720 seats. Party President Manfred Weber said in a statement that the parliament cannot move forward with the trade deal the EU agreed to last year because of threats from the United States.
“The EPP is in favour of the EU–U.S. trade deal, but given Donald Trump’s threats regarding Greenland, approval is not possible at this stage. The 0% tariffs on U.S. products must be put on hold,” said Weber.
The deal by Trump and von der Leyen last year would eliminate tariffs on goods from the United States to the EU, and cap U.S. tariffs on European products at 15%. Because of Trump’s trade threats over Greenland, officials in the bloc want to freeze the trade agreement and potentially pull other economic levers against the United States as well.
French President Emmanuel Macron intends to ask the EU to use the bloc’s Anti-Coercion Instrument, known as the trade “bazooka,” against the United States. The instrument would allow the bloc to take significantly more steps against the United States, such as placing limits on intellectual property protections and restricting investment.
“He will be in contact all day with his European counterparts and will ask, in the name of France, the activation of the Anti-Coercion Instrument,” Macron’s office told Politico Europe on Sunday.
In response to the escalating trade threats coming from Europe, National Economic Council Director Kevin Hassett on Sunday defended Trump’s approach.
“I think right now with respect to Greenland, the president has a strong view that it’s a national security matter for the U.S. to have more control over Greenland, and I’m confident that in the end, he’s going to negotiate a deal that’s great for us and great for our partners,” said Hassett.
