European powers have drawn a line in the sand, warning the United States of severe economic consequences if it follows through on threats to impose punitive tariffs linked to former President Donald Trump's ambitions for Greenland. The escalating row threatens to spark a full-scale transatlantic trade war.
European Allies Vow Not To Tolerate "Blackmail"
The crisis erupted after Donald Trump suggested imposing significantly higher tariffs on nations opposing his efforts to acquire Greenland. In a robust response, German Finance Minister Lars Klingbeil and French Finance Minister Roland Lescure issued a joint statement declaring their countries would not accept what they termed "blackmail" from a key ally.
Speculation quickly mounted within diplomatic circles that the European Union was preparing a formidable countermeasure: a package of retaliatory tariffs on US goods worth a staggering €93 billion. This move signals a potentially dramatic hardening of the EU's stance towards protectionist policies emanating from Washington.
Starmer Urges Calm Amid Rising Tensions
UK Prime Minister Sir Keir Starmer entered the fray on Monday 19 January 2026, condemning Trump's initial threats as "completely wrong." However, speaking from Westminster, he also cautioned against a cycle of retaliation that could harm the global economy.
"While the threats from the former US president are completely wrong, we must be clear-eyed that a tit-for-tat trade war is in no one’s interest," Starmer stated. His comments appeared to rule out the UK joining any immediate retaliatory tariff measures, instead advocating for diplomacy and calm to resolve the dispute.
A Precarious Moment for Transatlantic Trade
The situation presents a major test for international trade relations. The threat of €93bn in EU tariffs represents one of the most significant economic challenges between the allies in recent years. Analysts warn that such measures could:
- Increase costs for consumers on both sides of the Atlantic.
- Disrupt complex supply chains in key industries like automotive and technology.
- Damage long-standing diplomatic ties within NATO.
The core issue remains Trump's persistent interest in Greenland, a strategic autonomous territory within the Kingdom of Denmark. Using tariffs as a geopolitical lever to pressure European nations over this ambition has been met with unified and forceful resistance from Berlin and Paris.
As of Monday 12:55 GMT, the US administration has yet to formally implement the threatened tariffs, leaving a narrow window for de-escalation. The world now watches to see if economic brinkmanship will give way to negotiation, or if the spectre of a costly trade war will become a reality.
