EU Prepares 'Carrot-and-Stick' Response to Trump's Greenland Ambitions

The European Union is reportedly considering a robust response to President Donald Trump's perceived ambition to acquire Greenland, potentially involving new tariffs on US imports or restricting American companies' access to the bloc's market. This development, first reported by the Financial Times, follows Trump's repeated expressions of interest in Denmark's overseas territory.

President Trump has long eyed control over Greenland, citing concerns about Russian and Chinese influence in the strategically vital Arctic region. His pressure escalated recently when he threatened to impose a new 10% tariff on several NATO members, including Denmark, starting in February, with a potential increase to 25% by June 1 if a resolution isn't reached.

According to the FT, European diplomats engaged in discussions over the weekend about reactivating tariffs worth approximately $110 billion, which had previously been suspended until February 6. An EU diplomat indicated to the newspaper that the bloc favors a "carrot-and-stick" strategy, aiming to temper Trump's actions while simultaneously preventing a fracture within NATO.

"There are clear retaliation instruments at hand if this continues... [Trump's] using pure mafioso methods," an unnamed diplomat was quoted as saying, emphasizing the bloc's desire for calm and to offer Trump "an opportunity to climb down the ladder."

Bloomberg also reported on potential EU retaliatory measures, including the possibility of selling trillions of dollars in US bonds and stocks held by European entities. However, the outlet noted that a significant portion of these assets is controlled by private funds outside government oversight, and such a sale could inadvertently harm European investors.

In response to Trump's initial threats, Denmark has deployed troops to Greenland as part of the "Arctic Endurance" drill. Meanwhile, European politicians have voiced strong warnings that any US attack on a fellow NATO member would irrevocably damage the alliance. Trump previously stated he might acquire Greenland "the hard way" and has not ruled out the use of force. NATO chief Mark Rutte, after a phone call with Trump, affirmed that member states are ready to address the president's concerns regarding Greenland's security.