Europe weighs using trade 'bazooka' against the U.S. as Greenland crisis deepens

European states are reportedly considering retaliatory tariffs and broader punitive economic counter-measures against the U.S. after President Donald Trump threatened fresh export levies, deepening a rift over Greenland.

Trump announced Saturday that eight European countries would face increasing tariffs, starting at 10% on Feb. 1 and rising to 25% on June 1, if a deal is not reached allowing Washington to acquire Greenland, the mineral-rich island which is a semi-autonomous territory of Denmark.

The proposed tariffs would target Denmark, Norway, Sweden, France, Germany, the U.K, the Netherlands and Finland. The duties would come on top of existing export tariffs to the U.S., currently standing at 10% for the U.K. and 15% for the EU.

Regional diplomats held an emergency meeting in Brussels on Sunday afternoon to discuss their response to Trump's threat to escalate tariffs, with France reportedly pushing for the EU to use its strongest economic counter-threat to the U.S., known as the “Anti-Coercion Instrument” (ACI).