US President Donald Trump has set his sights on resource-rich Greenland, an autonomous territory of Denmark. © Andrew Caballero-Reynolds, AFP

'Dangerous downward spiral': Europe hits back at Trump tariff threat over Greenland

· France 24

European leaders on Sunday slammed US President Donald Trump's threat of tariffs over their opposition to his designs on Greenland, warning transatlantic ties were at risk.

European countries including Denmark, of which Greenland is an autonomous territory, said they "stand united" against Trump's vow on Saturday to hit them with tariffs of up to 25 percent unless Greenland is ceded to the United States.

"Tariff threats undermine transatlantic relations and risk a dangerous downward spiral," Britain, Denmark, Finland, France, Germany, the Netherlands, Norway and Sweden warned in a joint statement.

Greenland: key area of the Arctic © Jonathan WALTER, Julie PEREIRA / AFP

Denmark's Foreign Minister Lars Lokke Rasmussen said Trump's ultimatum threatened the world order "as we know it" and the future of the NATO military alliance.

NATO Secretary General Mark Rutte said he had spoken to Trump about "the security situation in Greenland and the Arctic" and hoped to talk again at this week's Davos summit. He did not elaborate on their conversation.

The European Council said it was calling a summit of EU leaders in the coming days, following a meeting of EU ambassadors in Brussels on Sunday.

The Financial Times reported that ⁠European ‍capitals may ​hit the US with ⁠€93 billion ($107.71 billion) worth of tariffs or restrict American ​companies from ‍the bloc's market in ​response to Trump's threats.

The ‍retaliation measures are being ​drawn up to give European leaders leverage in pivotal meetings ‌with Trump at the World Economic ‍Forum in Davos this week, the FT report said, citing officials involved in the preparations for the ‍meetings in Switzerland.

Trade deal threatened

The bloc clinched a deal with Washington in July for most EU exports to face a 15-percent US levy. It was unclear how Trump's threatened tariffs would work against that deal.

"I don't believe that this agreement is possible in the current situation," German Foreign Minister Johann Wadephul told ARD television.

Aides to French President Emmanuel Macron said he would ask the EU to activate a never-before-used "anti-coercion instrument" against Washington if Trump makes good on his additional tariffs.

How can Europe respond to Trump's tariff threats over Greenland?

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© France 24

This measure allows for curbing imports of goods and services into the EU, a market of 27 countries with a combined population of 450 million.

Trump has repeatedly expressed his desire to seize Greenland since returning to the White House for a second term.

His rhetoric towards that goal has hardened since he ordered a military operation against Venezuela early this month to capture its leader, Nicolas Maduro.

'Blackmail'

Trump and his administration have argued that Greenland coming under US rule would serve American "national security".

He and his aides have also argued that Denmark, a fellow NATO member, would be unable to defend Greenland should Russia or China ever seek to invade.

Denmark and several of its European NATO allies responded by recently sending small numbers of military personnel to Greenland for an exercise, to which the US was also invited.

Thousands of people in Greenland protested on the weekend against Trump's bid to bring the island under US rule © Emil Helms / Ritzau Scanpix/AFP

And on Saturday, thousands of people in Greenland and Denmark protested against the US push to control the Arctic island.

"Make America Go Away" read the wording on caps worn by many demonstrators, riffing on Trump's "Make America Great Again" slogan.

Trump responded Saturday with his threat to slap goods coming into the US from Britain, Denmark, Norway, Sweden, France, Germany, the Netherlands, and Finland with 10-percent tariffs starting February 1.

They would rise to 25 percent from June 1 "until such time as a Deal is reached for the Complete and Total purchase of Greenland", Trump wrote on his social media platform, Truth Social.

British Prime Minister Keir Starmer called Trump's threat 'completely wrong' © Ben STANSALL / AFP

Even Italy's far-right Prime Minister Giorgia Meloni, one of Trump's closest European allies, baulked at the threat.

"I believe that imposing new sanctions today would be a mistake," she told journalists during a trip to Seoul.

"I spoke to Donald Trump a few hours ago and told him what I think," she added.

British Prime Minister Keir Starmer called it "completely wrong", and said he planned to discuss the situation with Trump "at the earliest opportunity".

Dutch Foreign Minister David van Weel denounced Trump's threat as an "inexplicable" form of "blackmail".

Trade war fear

France's Agricultural Minister Annie Genevard warned that tariffs would hurt Washington too.

"In this escalation of tariffs, (Trump) has a lot to lose as well, as do his own farmers and industrialists," she told broadcasters Europe 1 and CNews.

Norway, also targeted by Trump's tariffs threat but like Britain not an EU member, said it was not currently looking at retaliation against US goods.

(FRANCE 24 with AFP and Reuters)