Donald Trump threatens EU countries with new tariffs.Image: keystone
In order to take over Greenland, the US President is setting up a customs blockade against eight European countries. The situation could quickly escalate and even spread to NATO.
01/19/2026, 04:5601/19/2026, 04:56
Remo Hess, Brussels / ch media
US President Donald Trump is turning the escalation spiral: On Saturday he announced new punitive tariffs against those European states that had recently sent a symbolic contingent of soldiers to Greenland. Is there now a trade war between the USA and Europe? And what does that mean for Switzerland? The most important questions and answers.
That’s what it’s about
Donald Trump has announced new tariffs against eight European countries in the dispute over Greenland. In addition to Denmark, Germany, France, Sweden, the Netherlands and Finland, the two non-EU countries Great Britain and Norway are also affected. All eight countries are members of the NATO defense alliance.
From February 1st, these countries will have to pay an additional 10 percent punitive tariffs. If they do not give up their resistance to the US annexation plans for Greenland, according to Trump, tariffs will rise to 25 percent by June. Together with the 15 percent that already applies, European countries would have to pay 40 percent for their exports to the USA. Trump states on his online platform “Truth Social” that the tariffs would remain in effect until the USA had “completely” acquired Greenland.
How are the Europeans reacting?
With a warning. Trump’s tariff threats carry the “risk of escalation,” the eight affected states said in a joint statement. In addition, the EU Commission, which represents all 27 EU countries on trade issues, announced that it would react jointly. On Sunday, the EU Commission met with the member states in Brussels for an emergency meeting.
As the “Financial Times” Reportedly, the introduction of counter-tariffs that the EU has had in store since last summer is said to have been prepared there. Counter tariffs that it could impose on US goods worth around 93 billion euros. These include industrial products, but also whiskey, soybeans and motorcycles. EU Council President António Costa also invited people to the EU crisis summit at the end of the week.
Will there now be a new tariff war?
If Trump gets really serious, the EU will hit back. In the short term, the trade deal concluded last summer will no longer be implemented.
The EU Parliament should actually have reduced tariffs on most industrial goods and some agricultural products to zero this week. This vote is now canceled. In addition, the Europeans’ already shaky promise to buy oil and gas from the USA worth a total of 750 billion euros now seems even more fragile.
Does the dispute have the potential to blow up NATO?
That would be the worst possible scenario: that the EU gets into a new tariff war against the USA and Trump leaves NATO in a knee-jerk reaction. NATO always emphasizes that there is no reason to doubt Americans’ loyalty to the alliance. But since the big NATO summit in 2018, it has been clear that Donald Trump can do anything. At that time he was on the verge of announcing that the USA would withdraw from the defense alliance.
Can Trump even impose different tariffs on EU countries?
Yes, he can. In practice, however, this will be difficult. EU goods can be moved back and forth between countries duty-free. As a result, sanctioned France could ship its goods to the USA via Belgium. The USA would then have to check every single item regarding its origin and components. This may be easy with French wine. But with industrial products it becomes much more difficult. If Trump really wants to carry out his threats, sooner or later it would result in new tariffs for the entire EU.
Does the EU have even tougher measures?
Yes, she has. The real “bazooka” is the so-called “anti-coercive” instrument. It has never been used before, but is there when a foreign power tries to blackmail the EU. This is obviously the case with Donald Trump and his annexation plans towards Greenland: Trump is putting economic pressure on the EU in order to achieve a political goal. French President Emmanuel Macron therefore thinks it is time to unpack the instrument. The new US tariff threats are “unacceptable”. We will not allow ourselves to be “intimidated” and will “react unitedly,” says Macron.
What could the bazooka be aimed at?
The EU could withdraw approval for certain US products in Europe. But it could also simply target US tech giants like Google, Apple or Amazon. Unlike goods, the EU has a large trade deficit here. In 2024, Europeans purchased almost 500 billion euros in services in the USA, the majority of them in the IT and digital sectors.
What do Trump’s tariff threats mean for Switzerland?
Nothing for now, as our country is part of the internal market, but not the customs union. But Switzerland would be swept away by the economic turbulence of an escalating tariff war.