Showdown over Greenland: EU's Retaliatory Tariffs Loom

The European Union may automatically impose $107.68 billion in retaliatory tariffs on U.S. goods on February 6 if an agreement with the U.S. is not reached. This is in response to U.S. threats to impose tariffs over the Greenland dispute. The tariffs were previously suspended after a temporary trade deal.

The European Union is preparing to activate an extensive package of retaliatory tariffs worth €93 billion ($107.68 billion) against the United States, according to an EU diplomat. The tariffs will be enacted automatically on February 6 if no agreement is reached with the U.S. concerning the ongoing Greenland dispute.

U.S.-EU trade relations are under renewed strain as this escalation could dismantle the trade agreement reached just months ago, which had temporarily suspended EU import tariffs on U.S. goods. Brussels had agreed to hold off on the taxes in a bid for a broader negotiation with Washington.

The suspension of these tariffs, agreed upon last August, is now at risk, threatening to further complicate international trade dynamics. The U.S. dollar was valued at 0.8637 euros at the time of this report.