The European Union is considering suspending further work on its trade deal with the United States as tensions rise over President Donald Trump’s threat to impose new tariffs on European allies.
The move follows Trump’s warning that tariffs would take effect from Feb. 1 on a group of EU states, as well as Britain and Norway, unless the United States is allowed to buy Greenland — a demand widely condemned in Europe as coercion.
EU ambassadors agreed on Sunday to step up diplomatic efforts to deter Washington, while preparing countermeasures if tariffs are imposed. Options include reactivating a suspended package of tariffs on U.S. goods, which could come into force in early February.
Another possibility is triggering the bloc’s unused Anti-Coercion Instrument, which would allow the EU to restrict U.S. access to public contracts, investment or services. EU officials said support for this option remains divided.
European Council President Antonio Costa said member states were united in backing Denmark and Greenland and ready to resist “any form of coercion”.
The dispute is expected to dominate discussions at the World Economic Forum in Davos this week, where Trump is due to speak.
