The European Union is rapidly mobilizing a massive economic counterstrike following President Donald Trump’s ultimatum to impose tariffs on eight European nations. As of January 20, 2026, Brussels is preparing to reactivate a suspended retaliation package that would hit €93 billion ($108 billion) of U.S. goods if Washington follows through on its threats next month.
The Trigger: The "Greenland Ultimatum"
The conflict erupted on January 17, when President Trump announced via Truth Social that he would impose a 10% tariff on all imports from Denmark, France, Germany, the UK, the Netherlands, Sweden, Norway, and Finland starting February 1, 2026.
- The Escalation: The President stated these tariffs would rise to 25% on June 1 unless a deal is reached for the "Complete and Total purchase of Greenland" by the United States.
- The Context: The threat appears to be a response to "Arctic Endurance," a Danish-led NATO military exercise in Greenland, which the administration characterized as an affront to U.S. interests in the region.
The EU Response: A "Ready-Made" Hammer
Unlike previous trade disputes that required months of calculation, the EU is moving with unprecedented speed because the weapon is already loaded.
The €93 billion list currently on the table is not new; it is a "break-glass-in-case-of-emergency" package that was approved in 2025 but suspended following the tentative July 2025 US-EU trade truce. Because the legislation is already drafted, the EU can bypass the usual bureaucratic delays and implement the levies almost immediately—likely as soon as February 6, just days after the U.S. tariffs would take effect.
Targeted U.S. Sectors The retaliation list is designed to maximize political pain by targeting iconic American exports and politically sensitive industries:
- Agriculture: Bourbon whiskey, corn, soybeans, and poultry.
- Industrial: U.S.-made automobiles, aircraft (Boeing), and heavy machinery.
- Consumer Goods: Medical devices, plastics, and chemicals.
The "Nuclear Option": Anti-Coercion Instrument (ACI)
Beyond standard tariffs, EU leaders meeting in Brussels this week are seriously debating the activation of the Anti-Coercion Instrument (ACI) for the first time in history.
Known in diplomatic circles as the "trade bazooka," the ACI allows the EU to go beyond tariffs and restrict U.S. access to:
- Public Procurement: Banning U.S. companies from bidding on European government contracts.
- Investment: Blocking U.S. foreign direct investment (FDI) into the bloc.
- Services: Restricting American digital and financial service providers operating in Europe.
Collateral Damage: The July 2025 Trade Deal
The first casualty of this dispute is the diplomatic progress made last year. The European Parliament has effectively frozen the ratification of the July 2025 trade deal, which was supposed to lower U.S. levies on European goods to 15%.
Leading MEPs, including the chair of the trade committee, have stated that ratifying a deal is "impossible" while member states are under threat of territorial coercion.
If your supply chain relies on transatlantic trade, the window to act is closing. Linktrans can help you assess your exposure to the pending €93B tariff list and identify alternative sourcing or bonded warehousing strategies before the February deadline. Contact us immediately to run a risk analysis on your HS codes.
21 Jan, 2026
