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European Nations Warn of 'Downward Spiral' as US Tariffs Threaten Relations

The Irish Times
January 18, 20264 days ago
European countries threatened by tariffs warn of ‘downward spiral’ in US relations

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Eight European nations criticized US tariff threats over Greenland as a breach of relations, warning of a "downward spiral." They affirmed solidarity with Denmark and Greenland, emphasizing sovereignty and territorial integrity. EU ambassadors convened an emergency meeting to discuss the dispute, with leaders vowing unity and a coordinated response against potential tariffs.

The governments of the eight European countries threatened with US tariffs have criticised comments coming from Washington as a breach in Europe-US relations and warned of a “downward spiral”. In a joint statement on Sunday, France, Germany, the UK, Denmark, Finland, the Netherlands, Norway and Sweden, reemphasised their united stance on Greenland. “Tariff threats undermine transatlantic relations and risk a dangerous downward spiral. We will continue to stand united and coordinated in our response. We are committed to upholding our sovereignty,” it said. It was prompted by US president Donald Trump‘s threat of a wave of increasing tariffs on European allies until the US was allowed to acquire Greenland. The involvement of troops from several European countries in a Danish military exercise in the Arctic was “pre-coordinated”, the European governments noted, and posed no threat to anyone. They reaffirmed their firm stance behind the principles of “sovereignty and territorial integrity” in the Greenland dispute. “We stand in full solidarity with the Kingdom of Denmark and the people of Greenland,” the statement said. Sunday’s statement came as ambassadors from the European Union’s 27 countries were preparing to convene for an emergency meeting. Cyprus, which holds the six-month rotating EU presidency, said late on Saturday that it had called the meeting, which EU diplomats said was set to start at 4pm GMT. [ European leaders may soon drop the don’t-upset-the-toddler approach to Trump relationsOpens in new window ] Earlier, European leaders united in condemnation of Mr Trump’s plan to apply tariffs on several Nato allies. British prime minister Keir Starmer described Mr Trump’s decision as “completely wrong” and said he would be “pursuing this directly” with the US administration. The US president said the UK will be charged a 10 per cent tariff “on any and all goods” sent to the US from February 1st, increased to 25 per cent from June 1st, until a deal is reached for Washington to purchase Greenland from Denmark. He said the same would apply to Denmark, Norway, Sweden, France, Germany, the Netherlands and Finland and that they had “journeyed to Greenland, for purposes unknown”. Mr Starmer said: “Our position on Greenland is very clear – it is part of the Kingdom of Denmark and its future is a matter for the Greenlanders and the Danes. “We have also made clear that Arctic security matters for the whole of Nato and allies should all do more together to address the threat from Russia across different parts of the Arctic. “Applying tariffs on allies for pursuing the collective security of Nato allies is completely wrong. We will of course be pursuing this directly with the US administration.” Although Washington has been ratcheting up pressure over its plans for Greenland, US reports suggest the countries were given no notice of what was coming. Sweden’s prime minister Ulf Kristersson said his country was having “intensive discussions” with the other European countries to decide on a co-ordinated response, while French president Emmanuel Macron said he would hold talks with European partners. In ‍a newspaper interview published on Sunday, Spanish prime minister Pedro Sánchez said any military action by the US against Denmark’s ‍vast Arctic island would damage Nato and legitimise the invasion of Ukraine by Russia. “If we focus on Greenland, I have to say that a US invasion ‌of that territory would make Vladimir Putin the happiest man in the world. ⁠Why? Because it would legitimise his attempted invasion of Ukraine,” ‌he ​said ‍in an interview in La Vanguardia newspaper. [ Denmark and Greenland united in mass protests against Trump annexation threatsOpens in new window ] “If the United States were to use force, it would be the death knell for Nato. Putin would be ⁠doubly happy.” Earlier this week, the UK confirmed it had sent a military officer to Greenland as Denmark stepped up its military presence in the Arctic and High North. Downing Street said they were sent at Denmark’s request to join a reconnaissance group in advance of a planned Arctic endurance exercise, but denied it amounted to a “deployment”. In a post on Truth Social on Saturday, Mr Trump said: “These Countries, who are playing this very dangerous game, have put a level of risk in play that is not tenable or sustainable. “Therefore, it is imperative that, in order to protect Global Peace and Security, strong measures be taken so that this potentially perilous situation end quickly, and without question.” Mr Trump said the US was “immediately open to negotiation with Denmark and/or any of these Countries that have put so much at risk, despite all that we have done for them, including maximum protection, over so many decades”. He said it was “time for Denmark to give back”, adding: “China and Russia want Greenland, and there is not a thing that Denmark can do about it.” EU leaders said the Danish exercise “poses no threat to anyone” and warned tariffs would risk a “dangerous downward spiral” in transatlantic relations. European Commission president Ursula von der Leyen and European Council president Antonio Costa said: “The pre-co-ordinated Danish exercise, conducted with allies, responds to the need to strengthen Arctic security and poses no threat to anyone. “The EU stands in full solidarity with Denmark and the people of Greenland. Dialogue remains essential, and we are committed to building on the process begun already last week between the Kingdom of Denmark and the US. “Tariffs would undermine transatlantic relations and risk a dangerous downward spiral. Europe will remain united, co-ordinated, and committed to upholding its sovereignty.” Mr Macron said he would not bow to “intimidation”, while Mr Kristersson insisted “we will not let ourselves be blackmailed” and Finland’s prime minister Petteri Orpo said tariffs would be in “no-one’s interest”. Norway’s prime minister Jonas Gahr Støre wrote on social media: “Threats have no place among allies.” The EU’s foreign policy chief said tariffs could make the US and EU poorer and boost China and Russia. Former Estonian prime minister Kaja Kallas said on social media: “China and Russia must be having a field day. They are the ones who benefit from divisions among Allies. [ ‘I’ve not felt so insecure before’: Greenlanders prepare for crisis amid a lack of official adviceOpens in new window ] “If Greenland’s security is at risk, we can address this inside Nato. Tariffs risk making Europe and the United States poorer and undermine our shared prosperity.” Hundreds of people in Greenland’s capital Nuuk attended a rally on Saturday in support of self-governance. Thousands also took part in rallies across Denmark on Saturday opposing any US takeover of Greenland. Since the US began openly discussing the annexation of Greenland at the start of 2026, the UK has stepped up discussions on Arctic security with Sir Keir raising the issue in calls with Mr Trump, the Danish prime minister Mette Frederiksen and Nato secretary-general Mark Rutte. – PA/Reuters

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    EU Tariffs Threaten US Relations: 'Downward Spiral' Warned