EU has nuclear option to deal with Trump’s Greenland tariffs

According to Google Translate, Greenland’s Prime Minister Jens Frederik Nielsen said on Monday that he remained firmly committed to the island’s autonomy and that “recent U.S. statements, including the threat of tariffs, do not change that policy. We will not be under pressure.”

Europe is reportedly considering using a trade bazooka and imposing tariffs on the United States worth 93 billion euros ($108 billion) after President Donald Trump threatened to impose tariffs on eight European countries unless a deal to sell Greenland is reached.

At an emergency meeting in Brussels on Sunday afternoon local time, France called on the European Union to use “anti-coercion measures,” the Financial Times reported.

The EU says the measure is aimed at deterring “economic coercion” that encourages policy changes that could affect trade and investment within the region. Retaliation could include not only trade and financial market measures, but also “trade-related aspects of intellectual property rights” and “public procurement.”

Due to various influences, ACI is seen as a nuclear option to counter President Trump’s tariffs. That is why not all EU member states are in favor of its introduction. Carsten Nickell, vice president of research at Teneo, told CNBC that Germany has tended to be reluctant to use it, in part because the German economy has become increasingly dependent on exports.

But no matter where you are on the continent, you can’t escape President Trump’s tariffs. Sectors most at risk include the automobile industry, Germany’s main industry. BMW Listed in Milan Stellantis Some of the members have fancy names such as French names. LVMH and keringwith Danish and Swiss pharmaceutical giant Novo Nordisk. Rocherespectively.

The news rattled the market. futures tied to Dow Jones Industrial Average It shows the index is set to open Tuesday down 378 points. European stocks fell broadly on Monday, but safe-haven assets fell. gold and silver The new high comes just days after breaking the previous record.

And that’s just a reaction to President Trump’s first wave of additional tariffs. If the EU were to strike back, whether with retaliatory tariffs or a trade bazooka, the impact would be bigger and more far-reaching.

—CNBC’s Holly Ellyatt contributed to this report.

Europe considers use of trade ‘bazooka’ against US France reportedly asked the EU on Sunday to use its strongest economic countermeasures against the US, known as “anti-coercion measures”, in retaliation for President Trump’s Greenland tariffs.

Mr. Powell to attend Supreme Court argument. The Fed chairman is scheduled to attend oral arguments Wednesday at the U.S. Supreme Court in a lawsuit challenging President Trump’s authority to fire Fed Director Lisa Cook, a person familiar with the situation told CNBC.

According to the Kremlin, President Putin has invited President Trump to join the Peace Commission. The council, established by President Trump last year, is seen as a way to oversee Gaza’s reconstruction. President Trump reportedly wants countries to pay $1 billion for permanent membership.

US futures fell. U.S. stock futures on Monday night showed the major indexes could start lower, with the Dow Jones Industrial Average dropping more than 300 points. The market was closed for a public holiday. pan-european Stocks 600 The car giant’s stock price plummeted, dropping 1.19%.

(PRO) Europe has an advantage in Greenland tariffs. That’s according to Deutsche Bank analysts, who said “the United States has one key weakness” that could give European countries leverage.

Trump is planning to go to Davos, but there are some big names who won’t be there.

US President Donald Trump will attend the World Economic Forum’s annual meeting in person for the first time since addressing the forum during his first term in 2020. The WEF says it will bring the “largest” U.S. delegation to date.

Amid the escalating conflict over Greenland, representatives of the Danish government had been invited but decided not to attend, a WEF spokesperson said on Monday. Chinese President Xi Jinping is not on the list of WEF attendees, as are the leaders of Brazil and India.

— Lucy Handley