European industry has issued a fierce rebuke against what it calls "ludicrous demands" from former US President Donald Trump, who has threatened a fresh trade war unless Greenland is handed over.
Industry Leaders Warn of Enormous Costs
The president of Germany's powerful VDA automotive association, Hildegard Müller, stated that the costs of additional US tariffs would be enormous for German and European industry, particularly during an already challenging economic period. Müller urged for a "smart, strategic response from Brussels" that is coordinated with the affected nations.
Trump's shock announcement on Saturday outlined plans to impose additional tariffs of 10% in February, rising to a further 25% in June. This move has shattered a period of relative calm in transatlantic trade that followed a deal struck at the US president's Scottish golf course last July.
EU Prepares Emergency Response
European leaders are scheduled to convene for an emergency summit in Brussels on Thursday. They will discuss the prospect of imposing counter-tariffs on US exports by 7 February, targeting sectors from liquefied natural gas to aircraft and machinery.
Bertram Kawlath, president of the VDMA German engineering association, warned that capitulating to Trump would set a dangerous precedent. "If the EU gives in here, it will only encourage the US president to make the next ludicrous demand and threaten further tariffs," he said.
The German Chamber of Commerce and Industry (DIHK) also criticised the move, with executive board member Volker Treier stating that Trump was unacceptably linking economic sanctions to highly controversial political goals.
Businesses Scramble as Deadline Nears
Manufacturers across Europe are now urgently calculating their next steps. Some are exploring whether they can rush products to the US before the February deadline, mirroring actions taken during Trump's "liberation day" levies in April last year. However, a senior UK automotive figure noted the short timeline severely limits the ability to export cars ahead of the new duties.
An executive at a major carmaker exporting to the US described the situation as a repeat of past tactics, saying they were "reaching for the same golf bag and pulling out the same clubs again." The company is currently in a "wait and see" mode, hoping for government-level talks to defuse the crisis.
The impact extends far beyond heavy industry. Stephen Davies, CEO of Welsh whisky maker Penderyn, which exports to 20 US states, said the tariffs would impose unsustainable costs. "It's just not going to work," he stated, adding that businesses risk losing years of built-up market reputation and consumer knowledge if forced to withdraw.
The EU has struck a diplomatic note, calling for calm as officials work to prevent the crisis over Greenland from escalating into a full-scale trade war in just two weeks' time.
