Image: watson/getty/imago
analysis
China has shown how to degrade the US President to TACO Trump.
Jan 19, 2026, 1:24 p.mJan 19, 2026, 1:24 p.m
When Donald Trump threatened Xi Jinping with the big tariff stick, the Chinese president stayed cool. He stopped the export of rare earths, on which China has a quasi-monopoly, and because without these earths neither modern cars nor electrical appliances can be manufactured, and because it takes several years to break the Chinese monopoly, Trump immediately became subdued, agreed to a sensible deal with China and earned the nickname TACO-Trump, which means that Trump always pulls his tail in the end.
The Europeans are completely different. Although they are the oldest allies of the USA, Trump also pulled the tariff stick out of the bag against them. Successfully. Last August, EU Commission President Ursula von der Leyen signed an ignoble contract with Trump: The EU accepts a general tariff of 15 percent for all exports, while the USA can export to Europe duty-free.
TACO Trump Meme.
As is well known, you should never give in to a bully because in this case he will always demand more. Europeans are currently missing this lesson. Because they refuse to agree to an extortionate Greenland deal, Trump takes up his tariff stick again. As early as February, he wants to impose ten percent additional punitive tariffs on all eight countries that sent soldiers to Greenland – Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the United Kingdom. If they continue to refuse to give up their opposition to the Greenland deal, another 25 percent will follow in June.
But this time the break area bully seems to have gone too far. Europe is standing on its hind legs. The “Financial Times” quotes a number of high-ranking EU officials – still anonymous for the time being – as saying: “The days of flattering Trump are over” and “It no longer makes sense to continue negotiating with Trump”.
Even officially, plain language is spoken. For German Vice Chancellor Lars Klingbeil, “a red line has been crossed.” The two prime ministers of Sweden and Norway, Ulf Kristersson and Jonas Gahr Støre, jointly declare that Europe “will not allow itself to be blackmailed”.
The Council of Europe also supports Denmark
Resistance to Trump can now be organized relatively easily in Beijing. It is enough for the seven members of the standing committee of the Communist Party’s Politburo to agree. In Brussels everything is a little more complicated, so a lot of things boil down to empty words. This time, however, it is becoming apparent that a united front has emerged against Trump, not only because Denmark is popular with everyone, but also because everyone knows that they can face the same threat – and because anger against Trump has reached a boiling point.
Even the Council of Europe with its 49 members – including Switzerland – is taking part. The Secretary General, our former Federal Councilor Alain Berset, states in an op-ed in the New York Times: “The Council of Europe is ready to support Denmark and Greenland with concrete legal and constitutional means. If Europe fails to articulate a legal and political vision, others will fill the vacuum.”
The first meetings of the responsible EU top officials have already taken place. The heads of state are scheduled to meet for an extraordinary meeting next weekend and decide on how to proceed. What can that mean specifically?
The deal between the US and the EU negotiated last summer was actually supposed to come into force in February. However, if the US President carries out his tariff threats, it will become invalid. This also means that the EU will impose punitive tariffs on American imports totaling 93 billion euros. This will affect goods such as whiskey, chewing gum and Harley-Davidson motorcycles.
Wants tough measures: Emmanuel Macron.Image: keystone
However, that is just the beginning. French President Emmanuel Macron in particular is pushing for the use of the so-called customs bazooka. This refers to the Anti-Coercion Instrument (ACI) adopted by the EU in 2023. This means that American services could also be subject to tariffs, and that would really hurt Google, Facebook, X & Co. American investments could also be stopped.
If the bazooka is actually used, the worst possible scenario is looming: the EU and the USA are driving each other up in a trade war – and NATO is falling apart. Who else but Xi Jinping and Vladimir Putin can enjoy it?
The first steps have already been taken to prevent this scenario. Because Italian Prime Minister Georgia Meloni is so good with Trump, she called the White House. She speaks of a “misunderstanding” between the disputers. NATO Secretary General Mark Rutte also picked up the phone. Ever since he called Trump “Daddy,” he has been very popular with the US President.
Get along well: Georgia Meloni and Donald Trump.Image: keystone
He will take part in the WEF in Davos next Wednesday and will also meet with European heads of state, including German Chancellor Friedrich Merz. There is at least hope that the customs war meltdown can be averted through personal conversation.
This hope is not unfounded, because the schoolyard bully is a loudmouth. If he actually implements his tariff threats, Trump will also risk a lot. The USA is not the only attractive market. With around 450 million inhabitants in mostly wealthy countries, the EU can certainly keep up and has a lot to offer American companies. In addition, it would be American consumers who would have to shoulder the majority of the costs of the new tariffs.
The US President has a bad hand in domestic policy. Americans overwhelmingly reject Trump’s obsession with Greenland. This is shown by various surveys. There is even resistance to this in the Republican Party. Ultimately, it is conceivable that the Supreme Court will declare Trump’s punitive tariffs unconstitutional. A verdict is expected at any moment.
The Greenland soup is still a long way from being eaten. But it will leave its mark. The USA has definitely lost the last remaining trust in Europe. The term “de-risking” originally referred to the West’s efforts to break away from its dependence on China. Now it is used more and more often in the context of the USA.
China is now being viewed through different eyes. To keep Trump at bay, Canada has just launched a charm offensive against Beijing. Because of pressure from Washington, the EU managed to sign Mercosur, a free trade agreement with Latin American countries, after decades of effort. There are also discussions with India.
It is therefore entirely possible that the US President will also become TACO Trump towards the EU this time and that economist Paul Krugman will be right. He describes his president’s latest tariff threats as “Trump’s stupidest official act to date.”