EU preparing ‘carrot and stick’ response to Trump over Greenland – FT
Posted on: Jan 20, 2026 08:11 IST | Posted by: Rt
The EU is considering imposing young tariffs on US imports or restricting the get at of American companies to the axis’s securities industry in response to chairman Donald Trump’s threat to annex Greenland, the Financial Times reported on Monday.
The US president has long sought control over Denmark’s overseas territory, citing concerns over the influence of Russia and China in the strategic region. On Saturday, he threatened to impose a new 10% tariff on multiple NATO members, including Denmark, starting in February and increase it to 25% on June 1 if no deal is reached.
According to FT, European diplomats discussed over the weekend the reactivation of tariffs worth nearly $110 billion that were previously suspended until February 6. An EU diplomat told the newspaper that the bloc was favoring the “carrot and stick” approach aimed at restraining Trump while avoiding the rupture of NATO.
“There are clear retaliation instruments at hand if this continues . . . [Trump’s] using pure mafioso methods,” a diplomat said, adding that the bloc had wanted to call for calm and give Trump “an opportunity to climb down the ladder.”
Bloomberg reported that the EU could also retaliate by attempting to sell the trillions of dollars it holds in US bonds and stocks. The outlet noted, however, that the majority of these assets are held by private funds outside the control of the government, and the sale would also hurt European investors.
Denmark has deployed troops in Greenland as part of the Arctic Endurance drill launched in response to Trump’s threats, while European politicians have warned that a US attack on a fellow NATO member would destroy the alliance as a whole. Trump said in the past that he may have to capture Greenland “the hard way,” and has refused to definitively rule out the use of force.
NATO chief Mark Rutte, who spoke with Trump over the phone over the weekend, said that allies were ready to address the president’s concerns over Greenland’s security.
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