US President Donald Trump said he would impose 10% tariffs on eight European countries that oppose his efforts to take over Greenland, eliciting a forceful response from the continent.
Trump’s threat reflects his penchant for wielding his economic arsenal for foreign policy means — even against longstanding allies — after countries including Germany, France, and the UK sent troops to the autonomous Danish territory last week.
The eight tariff targets warned of a “dangerous downward spiral,” while the EU is considering retaliation: The French president urged the bloc to deploy its trade “bazooka,” a tool initially conceived to fend off China. “We either fight a trade war, or we’re in a real war,” a Bruegel fellow said.