EU Readies €93 Billion "Economic Bazooka" to Counter Trump’s Tariff Threat
The geopolitical landscape has shifted into uncharted territory as a trade war of historic proportions looms over the North Atlantic. What began as a dispute over Arctic sovereignty has escalated into a massive economic confrontation, with the European Union preparing a $101 billion package of retaliatory tariffs against U.S. companies.
The "Purchase" That Shook the Alliance
On January 17, 2026, President Trump announced a 10% tariff on all goods from eight European nations: Denmark, France, Germany, Finland, Norway, Sweden, the Netherlands, and the UK. The demand is unprecedented: the tariffs will remain in place—and rise to 25% on June 1—until a deal is reached for the "Complete and Total purchase" of Greenland.
The move is a direct response to these nations sending troops to Greenland under "Operation Arctic Endurance," a reconnaissance mission intended to support Danish sovereignty amid rising tensions in the region.
Europe’s Counter-Strike: The €93 Billion Retaliation
Brussels is not backing down. EU ambassadors held emergency talks on Sunday to finalize a "re-balancing" list of U.S. goods to be hit with punitive duties if the U.S. tariffs go into effect on February 1.
The Targets: The EU is reviving a suspended list that targets iconic American exports, including bourbon, Harley-Davidson motorcycles, and blue jeans, alongside heavy-hitting sectors like aircraft parts (€11 billion) and automotive machinery.
The "Anti-Coercion" Tool: For the first time, the EU is considering activating its Anti-Coercion Instrument (ACI). This would allow the bloc to go beyond simple tariffs, potentially restricting U.S. companies from public tenders, limiting trade in services, and freezing intellectual property protections.
Trade Deal Frozen: The European Parliament has already halted the ratification of the major transatlantic trade pact signed in July 2025.
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