Europe Braces for Tariff Fight Tied to Greenland

European Union ambassadors agreed Sunday to step up efforts to dissuade U.S. President Donald Trump from imposing tariffs on European allies, while preparing retaliation if duties proceed, diplomats said. Trump vowed on Saturday to impose escalating tariffs from February 1 on Denmark, Sweden, France, Germany, the Netherlands, Finland, Britain, and Norway “until the U.S. is allowed to buy Greenland,” a move that major EU states condemned as blackmail. EU leaders will debate responses at an emergency Brussels summit on Thursday. Options include a tariff package on €93 billion of U.S. imports, set to activate February 6 after a six-month suspension, or deploying the never-used “Anti-Coercion Instrument” (ACI), which could restrict U.S. access to public tenders, investments, banking, or services trade, areas where Washington runs a surplus, notably in digital services.

The Eurozone’s trade surplus narrowed to €9.9 billion in November 2025 from €15.4 billion a year earlier, below market expectations of €15.2 billion, as exports fell 3.4% while imports decreased 1.3%. In the broader EU, the trade surplus also fell to €8.1 billion from €11.8 billion. EU exports dropped 4.4% to €213.8 billion, due to lower sales of machinery & vehicles (-1.3%), chemicals (-12.8%), and food & drink (-1.6%). Exports decreased to the US (-20.3%), the UK (-6%) and China (-1.2%), but rose to Switzerland (6.7%). Meanwhile, imports fell 2.9% to €205.7 billion, mainly due to lower purchases of energy (-22.5%) and chemicals (-4.6%). On the other hand, imports rose for machinery & vehicles (3.3%). Imports from key partners fell, including the US (-7.1%), the UK (-4.7%), and Switzerland (-1.9%). However, imports from China rose 3.8%.

The Eurozone’s trade surplus widened sharply to €18.4 billion in October 2025 from €7.1 billion a year earlier, as exports increased while imports fell. Across the broader European Union, the trade surplus also climbed to €14.7 billion from €3.1 billion in October 2024. EU exports rose 1.0% to €258.0 billion, supported by stronger shipments of machinery and vehicles (+1.5%), food and drink (+0.9%) and raw materials (+1.8%). Exports surged to Switzerland (+16.5%), Norway (+6.1%) and Mexico (+8.7%), but fell to the US (-14.7%), the UK (-3.0%) and China (-3.3%). Meanwhile, imports fell 3.6% to €239.6 billion, weighed down by lower purchases of chemicals (-4.9%), energy (-24.0%) and food and drink (-1.1%), although machinery and vehicle imports rose 4.2%. By country, imports declined sharply from China (-34.1%) and India (-3.0%), while rising from the US (+19.5%), the UK (+16.7%) and Switzerland (+2.3%).