Tensions are rising between the European Union and the United States, as Brussels considers retaliatory tariffs worth up to $108 billion. The move comes amid a growing dispute linked to Washington’s stance on Greenland.
The row follows fresh tariff threats from US President Donald Trump, which target several European countries. These nations have opposed US pressure on Greenland, a strategically located Arctic territory under Danish control. The threats have unsettled European capitals and revived fears of a wider trade clash.
EU officials say the proposed US tariffs amount to economic pressure. Diplomats argue that trade measures should not be used to influence political or security decisions. In response, Brussels has begun preparing a list of counter-tariffs that could cover a broad range of American goods.
The scale of the response is significant. Retaliatory duties could reach €93 billion, or about $108 billion, making it one of the EU’s largest trade actions against the US to date. Officials stress that the objective is to protect European interests, not to provoke a full-blown trade war.
Beyond tariffs, the EU is also weighing the use of its Anti-Coercion Instrument. The mechanism allows Brussels to respond to what it sees as unfair economic pressure. Measures could include limits on US companies’ access to European markets or restrictions on investment and services. The tool has never been used against the US before.
The Greenland issue has added a sharp geopolitical dimension to the dispute. The island is rich in minerals and is strategically important in the Arctic. European leaders insist that questions of territory and security must remain separate from trade policy.
Washington, however, has defended its position. US officials say tariffs remain a legitimate policy option when national interests are at stake. No indication of a retreat has been given so far.
The standoff risks straining transatlantic ties. Analysts warn it could complicate NATO cooperation and freeze progress on EU-US trade discussions. Businesses on both sides are watching closely. For now, the EU says dialogue remains its preferred route. Yet preparations for retaliation continue quietly. The signal from Brussels is firm: if pressure escalates, Europe is ready to respond.