FX.co ★ Europe Braces for Tariff Fight Tied to Greenland

EU ambassadors convened on Sunday to intensify diplomatic efforts aimed at persuading U.S. President Donald Trump to reconsider imposing tariffs on European allies. They are also preparing countermeasures should these tariffs be enacted, according to diplomatic sources. In a statement made on Saturday, Trump declared his intention to implement escalating tariffs starting February 1 on several European countries, including Denmark, Sweden, France, Germany, the Netherlands, Finland, Britain, and Norway. He asserted that these measures would continue "until the U.S. is permitted to purchase Greenland," a demand that has been criticized by prominent EU nations as a form of coercion. EU leaders are scheduled to discuss potential strategies during an emergency summit in Brussels on Thursday. The proposed responses include a tariff package on €93 billion worth of U.S. imports, set to be triggered on February 6 following a six-month deferral. Additionally, the EU could consider utilizing the untested "Anti-Coercion Instrument" (ACI), which could limit U.S. participation in public procurements, investments, banking, or services trade—sectors where the U.S. holds a significant competitive edge, particularly in digital services.