EU Considers Trade Weapon Against US Amid Greenland Dispute
Table of Contents
European leaders are contemplating the use of the european Union’s Anti-Coercion Instrument (ACI) in response to escalating tensions with the United States stemming from the Greenland issue. The consideration of such a measure marks a important escalation in the transatlantic dispute.
Donald Trump adn the Greenland Proposal
The situation arose following former US President Donald Trump’s repeated expressions of interest in acquiring Greenland, an autonomous territory within the Kingdom of Denmark. Trump publicly stated in 2019 that “there can be no going back” on his pursuit of a potential acquisition, a position that was met with strong opposition from both Danish and Greenlandic officials. The Guardian reported extensively on the initial proposal and subsequent diplomatic fallout.
US Tariffs and the Arctic
Further complicating matters, the US threatened to impose a 10% tariff on eight European states that had increased their military presence in the Arctic region. this move was widely interpreted as a direct response to the rejection of Trump’s Greenland proposal. While European governments initially refrained from immediate retaliation, the threat of a trade war loomed over international discussions, including those at the World Economic Forum in Davos.
European Response and the Anti-Coercion Instrument
French President Emmanuel Macron characterized the situation as “crazy,” highlighting the unprecedented need for the EU to consider utilizing its ACI. Reuters detailed Macron’s comments and the EU’s internal deliberations.
European Commission President Ursula von der Leyen affirmed that brussels would respond to US pressure “in an unflinching way.” Danish Prime Minister Mette Frederiksen echoed this sentiment, stating the need for her country to “stand firm.”
The Anti-coercion Instrument
The ACI, formally adopted in 2023, is designed to protect the EU from economic coercion by third countries. The European Commission’s trade website provides detailed details on the instrument’s scope and mechanisms. It allows the EU to investigate and perhaps impose countermeasures against countries attempting to use economic pressure to influence policy decisions.
As of January 21, 2026, the situation remains tense, with no resolution to the underlying dispute over Greenland or the US tariff threats. The EU continues to evaluate its options, including the potential activation of the ACI. The White House reported a “minor electrical issue” with Air Force One in January 2019, causing a temporary return to Washington during trump’s planned trip to the World Economic Forum, but this incident is not directly related to the current trade considerations.NBC News covered the Air Force One incident at the time.
