The United States has warned the European Union against deploying its powerful anti-coercion trade measures in response to tensions over Greenland, cautioning that escalating tariffs could damage transatlantic trade relations and unravel a recently agreed deal.
Speaking on the sidelines of the World Economic Forum in Davos, US Trade Representative Jamieson Greer advised European leaders not to activate the EU’s anti-coercion instrument (ACI), often described as the bloc’s tariff “bazooka.” His comments followed renewed debate among EU officials after US President Donald Trump threatened to impose tariffs of up to 25 percent on eight European countries while reiterating his interest in acquiring Greenland, an autonomous Danish territory.
“Every country is going to act in its national interests, and those actions have natural consequences,” Greer told journalists, adding that the use of the ACI “would not be wise.” His remarks echoed earlier comments by US Treasury Secretary Scott Bessent, who also urged caution.
French President Emmanuel Macron has been among the most vocal European leaders calling for a tougher stance, including possible use of the ACI, which has never before been deployed. While some EU officials advocate dialogue to defuse the situation, others argue the bloc must respond firmly to what they describe as political and economic pressure.
Asked how Washington would react if the EU declared Greenland “non-negotiable,” Greer said, “If that’s the case, then so be it,” while warning that ignoring US advice could lead to unpredictable outcomes.
US Commerce Secretary Howard Lutnick also urged European nations to maintain low tensions, warning that retaliatory tariffs could undermine the transatlantic trade deal reached last July. That agreement capped US tariffs on most EU goods at 15 percent, while the UK secured a separate deal limiting tariffs to 10 percent.
Greer further noted that US trading partners should not assume permanent, unrestricted access to the American market, emphasizing that trade relationships under the current administration would remain subject to review and adjustment.
The dispute has emerged as a key issue dominating discussions at Davos, highlighting growing uncertainty in global trade relations.
