Feeling held hostage by economic threats, the EU warns Trump’s tariff threat might cause a global recession if not de-escalated. European leaders warned on Saturday that President Trump’s threat to levy tariffs over the Greenland purchase could severely damage the world economy. An emergency meeting of the EU’s 27 envoys has been called for Sunday to manage the fallout.
EU Presidents von der Leyen and Costa released a joint statement highlighting the risks of a “downward spiral.” They asserted that the European Union stands firm in its unity and commitment to sovereignty. The leaders made it clear that tariffs are an inappropriate tool for resolving territorial discussions.
The specific threats involve a 10% tariff on goods from key European allies starting on February 1. Trump indicated that these penalties would increase to 25% on June 1 and persist until the US successfully purchases Greenland. This places significant economic pressure on nations like Germany, France, and the UK.
Beyond the trade issues, the EU addressed the geopolitical context of the Arctic. Leaders defended recent Danish military exercises as necessary steps to strengthen regional security. They emphasized that these activities were pre-coordinated and pose no threat to the United States or any other nation.
Reaffirming their support for Denmark, the EU leadership noted that dialogue between Copenhagen and Washington is already underway. However, they stressed that the bloc will remain coordinated in its defense. The emergency meeting on Sunday will focus on maintaining a united front against the linkage of security, territory, and tariffs.