EU preparing ‘carrot-and-stick’ response to Trump over Greenland

January 20, 2026

TL;DR

The EU is considering retaliatory measures against the US, including tariffs and market access restrictions.
These measures are a response to President Trump's threat to annex Greenland and his previous tariff threats against NATO members.
European diplomats discussed reactivating $110 billion in previously suspended tariffs.
One diplomat described Trump's methods as "mafioso" and expressed a desire for de-escalation.
The EU might also consider selling its holdings in US bonds and stocks, though this could impact European investors.
Denmark has deployed troops to Greenland in response to Trump's actions.
European politicians have warned that a US attack on a NATO member would damage the bloc.
Trump has not ruled out the use of force to acquire Greenland.
NATO chief Mark Rutte stated that member states are prepared to address US security concerns regarding Greenland.

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