The options Europe has publicly outlined for responding to Trump’s tariff threats and calls for the US to annex Greenland focus on diplomatic and economic levers. Choosing between them depends on the continent’s willingness to face off against its powerful NATO ally.
The European Union has not ruled out using its nuclear option – the so-called “trade bazooka.” This is Europe’s biggest trade weapon, a measure that was adopted in 2023 with countries like China in mind, not allies like the US.
It is an anti-coercion tool and can be triggered if a country tries to coerce the EU or one of its member states by using “measures affecting trade or investment.”
If the EU uses it, it could block some of America’s access to EU markets or impose export controls but, given its bureaucratic nature, could take months to implement.
It’s a measure of absolute last resort and has never been used before.
Powerful blocs in the European Parliament have now indicated their unwillingness to approve the US-EU trade deal that was agreed last year.
And the EU is also considering imposing €93 billion ($108 billion) of previously announced retaliatory tariffs against the United States that were delayed by that trade deal, according to Reuters.
Europe and NATO have been seeking to engage with Trump, with some leaders messaging him directly. Trump leaked some of those texts earlier this week, offering a rare insight into exactly how this process works.
NATO chief Mark Rutte sought to flatter Trump, opening his message with “Mr. President dear Donald – what you accomplished in Syria today is incredible,” before adding, “I am committed to finding a way forward on Greenland.”
French President Emmanuel Macron struck a similar tone and listed options for multilateral and bilateral meetings when Trump visits Europe for Davos on Wednesday. It is unclear whether those meetings were arranged.
The flurry of diplomacy has appeared to influence Trump a little, even if it hasn’t convinced him to abandon his push for Greenland. According to a senior British official, Trump conceded in a phone call with Prime Minister Keir Starmer that he may have been given “bad information” on the European deployment of troops to Greenland.
CNN’s Lex Harvey, Martin Goillandeau and Auzinea Bacon contributed reporting.