European industry leaders have issued a furious response to what they label "ludicrous demands" from former US President Donald Trump, after he threatened to impose fresh tariffs unless Greenland is handed over.
Industry Warns of Enormous Costs
The president of Germany's powerful VDA automotive industry association, Hildegard Müller, stated that the costs of additional US tariffs would be enormous for German and European industry, particularly during an already challenging economic period. She called for a "smart, strategic response" from Brussels, coordinated with the affected nations.
Trump's shock announcement on Saturday outlined plans for additional tariffs of 10% in February, rising to a further 25% in June. This move has shattered a period of relative calm in transatlantic trade that followed a deal struck at Trump's Scottish golf course last July.
EU Prepares Emergency Response
European leaders are now scheduled to convene for an emergency summit in Brussels on Thursday. The agenda will focus on the prospect of imposing retaliatory counter-tariffs on US exports by 7 February, targeting sectors from liquefied natural gas to aircraft and machinery.
Bertram Kawlath, president of the VDMA German engineering association, urged the EU to stand firm. "If the EU gives in here, it will only encourage the US president to make the next ludicrous demand and threaten further tariffs," he warned. The VDMA represents vital tool machine exporters.
Businesses Scramble as Deadline Looms
The German Chamber of Commerce and Industry (DIHK) criticised the linking of economic sanctions to political goals as "unacceptable". Meanwhile, manufacturers are urgently assessing their options, with some considering whether to rush products to the US before the tariffs take effect, a tactic used during Trump's "liberation day" levies in April last year.
An executive at a major carmaker exporting to the US described the situation as a repeat of past tactics, stating they were "reaching for the same golf bag and pulling out the same clubs again". The industry is largely in a "wait and see" mode, awaiting formal direction on the tariff implementation.
Stephen Davies, CEO of Welsh whisky maker Penderyn, which exports to 20 US states, said the tariffs would impose unsustainable costs. "It's just not going to work... People will disappear from the market," he said, highlighting the damage to years of brand-building efforts.
The EU has struck a diplomatic note, calling for calm as officials work to prevent the crisis over Greenland from escalating into a full-scale transatlantic trade war in a matter of weeks.
