EU member states have held off imposing immediate retaliatory trade measures against the United States, including the use of the EU’s toughest response weapon, known as the Anti Coercion Instrument (ACI), according to an EU diplomat [over threats to Greenland].
The decision not to use the ACI, or to immediately reinstate some €93 billion in retaliatory tariffs against the Trump administration, which were suspended last summer to allow for the completion of the EU-US trade deal, was taken during an emergency meeting of EU ambassadors in Brussels.
“At present, there is no question of deploying the ACI or any other trade instrument against the US,” said the diplomat.
“The EU’s €93 billion in rebalancing measures have been suspended until 6 February.
“The EU will only decide after 1 February whether to extend that suspension.”
There’s a good reason not to do anything just yet – but a better reason to consider other non-retaliatory measures that could be considered in the interim. The good reason is that nothing as of yet has happened. The President of the US has threatened that tariffs will go into effect, those like Bessent have made rhetorical statements about ‘needing Greenland’. As of yet nothing substantively has changed. When it does, that’s a different matter. Perhaps wiser and cooler heads will prevail in Washington, but it makes little sense to escalate in economic terms until it’s clear just what the US is doing.
The better reason to consider other measures is much broader – and it goes well beyond economic aspects of this. At a minimum Greenland should be asked what sort of relationship it seeks, if any, with the EU. Their decision. Similarly with regard to defence. Their decision too. Greenland is in an interesting position, as part of the Kingdom of Denmark, but its representative bodies are legitimate and should be afforded a respect the US appears unable to do so.
There was a piece in Foreign Affairs about how the US could take Greenland almost by stealth across a couple of years. I’m a little sceptical because in this outline the US would all but set up parallel economic and political structures and effectively elbow Denmark out. That seems to suggest a remarkable passivity on the part of that state and others. But more importantly this does not appear to be the gameplan in Washington where pedal to the metal is the order of the day. Which makes one suspect that the idea is to essentially push by force of rhetoric and threats Denmark into ceding sovereignty in Greenland through some ‘purchase’ mechanism and as quickly as possible. Shock and awe as it were. Or bum rush, if you will. They’ve no patience for even the medium term haul of boxing clever and trying to prise Greenland away stealthily (and the situation in Venezuela underscores that, something that is lesser even that a coup or regime change – essentially the removal of a President of a sovereign state, a lot of rhetoric, but with the actual regime still in place). Everything is ‘now, now, now!’. It’s dumb, it’s utterly counterproductive to US interests, economic and international, and of course, almost needless to add, it’s unnecessary. But those are the times we live in. As someone said to me a month or two into the administration – these guys are drunk on power, they genuinely believe their own rhetoric and have no sense of its limitations.
Hence it’s been vital that other states have stepped up, and perhaps it is an indication that those states are finally realising that there’s no placating, or appeasing, this administration’s seemingly endless acquisitive fervour. That at some point there has to be a forceful no – but that needs, as noted above to be backed up by defence, economic and political measures that give real power to Greenlands sovereignty. And as importantly buttressing the sovereignty of other states that this administration might seek to undermine.

