Germany warns EU could deploy anti-coercion tools against Trump's tariffs

Monday 19 January 2026 - 12:40

By: Dakir Madiha

Germany warns EU could deploy anti-coercion tools against Trump's tariffs

European leaders have united in response to U.S. President Donald Trump's tariff threats, with Germany's finance minister declaring that a breaking point has been reached. Speaking at a joint press conference in Berlin alongside his French counterpart, Lars Klingbeil emphasized that the European Union stands ready to activate its most potent trade defense mechanism to counter what officials describe as economic blackmail. This comes after Trump's weekend announcement imposing duties on eight European nations opposed to the U.S. acquisition of Greenland.

Klingbeil stressed that Europe will not yield to pressure, highlighting the bloc's robust legal toolkit capable of delivering targeted countermeasures. The EU is now considering retaliatory tariffs worth 93 billion euros equivalent to 108 billion dollars on American goods should Trump follow through with his plan for a 10% levy on European imports starting February 1, escalating to 25% by June 1. EU ambassadors convened an emergency meeting in Brussels on Sunday to align their strategy, with a leaders' summit scheduled for Thursday.

France is pushing hard for the activation of the EU's untested Anti-Coercion Instrument, which could restrict U.S. firms' access to public procurement, curb investments, or hinder service trade where America holds surpluses with the bloc. French Finance Minister Roland Lescure labeled such intimidation among long-standing allies as utterly unacceptable. The dispute stems from Trump's reaction to these countries dispatching small military contingents to Denmark-led Arctic exercise "Operation Arctic Endurance," which he branded a dangerous provocation demanding full U.S. purchase of Greenland.

A joint statement from the United Kingdom, Denmark, Finland, France, Germany, the Netherlands, Norway, and Sweden warned that these tariff threats erode transatlantic ties and risk a damaging downward spiral. The European Parliament has halted approval of a recently negotiated EU-U.S. trade deal, with its trade committee chair Bernd Lange urging suspension and European People's Party leader Manfred Weber deeming ratification impossible for now. UK Prime Minister Keir Starmer called the tariffs misguided, Italy's Giorgia Meloni a Trump ally termed them a mistake after direct talks, and Denmark's Foreign Minister Lars Løkke Rasmussen said they imperil the global order.