US-EU Tariff Dispute: Trump’s 10% Tariff on 8 European Nations & EU’s 930B Euro Retaliation Plan

Publish Time: 2026-01-21 Origin: Site

On January 17, 2026, former US President Trump announced via social media that a 10% tariff will be imposed on goods imported from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland starting February 1, with the rate set to rise to 25% from June 1, until an agreement is reached on the US "full and complete purchase of Greenland". In response, the EU is considering retaliatory tariffs on $93 billion worth of US goods exported to Europe, or restricting US companies’ access to the EU market, with the retaliatory tariffs set to take effect automatically on February 6 if no agreement is reached. Notably, several European countries have sent troops to Greenland to participate in the "Arctic Endurance" military exercise initiated by Denmark, which has further intensified tensions.

1. Core Details of US Tariff Measures

Measure	Specification
Target Countries	Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, Finland
Effective Date	10% tariff from February 1; 25% tariff from June 1
Trigger Reason	US demands "full and complete purchase of Greenland"; European countries sent troops to participate in the "Arctic Endurance" military exercise in Greenland
Tariff Scope	All goods imported into the US from the 8 countries

2. EU’s Retaliatory Plan & Response

2.1 Retaliatory Tariff Measures

Target Scale: Consider imposing tariffs on US goods worth 93 billion euros exported to Europe, covering automobiles, poultry, etc., with a maximum tariff rate of 30%.
Effective Date: Retaliatory tariffs will take effect automatically on February 6 if no agreement is reached between the EU and the US.
Decision-making Process: EU member states held a meeting on January 18 to discuss restarting the tariff list and activating the Anti-Coercion Instrument (ACI). European leaders plan to use the retaliatory tariff threat as a bargaining chip during the Davos meeting and will decide whether to implement the retaliatory measures after observing whether the US actually imposes the tariffs on February 1.

2.2 Other Countermeasures

Anti-Coercion Instrument (ACI): The EU is considering activating the ACI, which may involve broader policy tools such as investment restrictions and taxation on US assets and services (e.g., digital services).
Suspension of Trade Agreement Approval: The European Parliament has suspended the approval of the US-EU trade agreement reached in July 2025.
Unified Attitude: EU leaders and the 8 targeted countries have issued joint statements, condemning the US tariff threat as undermining transatlantic relations and violating the basic principles of international law, and vowing to respond in a united and coordinated manner.

3. Underlying Causes & Tensions

Geopolitical Competition: The US aims to expand its influence in the Arctic region by "purchasing Greenland," while European countries, led by Denmark, are striving to safeguard their sovereignty and interests in the Arctic.
Military Exercise Trigger: The participation of European countries in the "Arctic Endurance" military exercise in Greenland is seen by the US as a challenge to its interests, directly triggering the tariff threat.
Trade & Security Game: The tariff dispute reflects the complex game between the US and the EU in trade and security fields. The US uses tariffs as a means of coercion, while the EU insists on safeguarding its sovereignty and trade interests.

4. Impact on Shippers & Forwarders

Tariff Risk: Shippers and forwarders need to closely monitor the latest tariff dynamics between Europe and the US, and adjust shipping plans in a timely manner to avoid cost increases caused by tariff hikes.
Shipping Schedule & Freight Rate: Inquire about the latest shipping schedules and freight rate information before shipping to avoid delivery delays due to changes in trade relations.
Contract Review: Review the terms related to tariff adjustments in existing trade contracts and clarify the responsibility for bearing additional costs caused by tariff changes.
Diversification of Markets: Consider diversifying export markets to reduce the impact of trade frictions between Europe and the US.

5. Outlook & Recommendations

5.1 Short-term Outlook

Negotiation Window: The Davos meeting provides a platform for negotiations between European and US leaders. There is still room for diplomatic consultations between the two sides before the implementation of the tariffs.
Uncertainty: The final implementation of the tariffs depends on the results of the negotiations. If no agreement is reached, the trade war between Europe and the US may escalate further, affecting global trade stability.

5.2 Recommendations for Shippers & Forwarders

Real-time Monitoring: Establish a special team to monitor the latest developments in US-EU trade relations and tariff policies, and release early warnings in a timely manner.
Flexible Pricing: Adjust product pricing strategies according to tariff changes to share the cost pressure with customers reasonably.
Alternative Routes: Explore alternative shipping routes and transportation methods to reduce the impact of possible trade disruptions.
Legal Risk Prevention: Consult professional legal and trade consultants to ensure compliance with the latest trade regulations and avoid legal risks.