Washington warns Europe over Greenland and its anti-coercion tool
In a new escalation of transatlantic tensions, the United States issued a strongly worded warning to European countries against invoking its so-called "anti-coercion mechanism," amid the growing crisis surrounding US President Donald Trump's desire to purchase Greenland from Denmark. The warning came from US Trade Representative Jameson Greer, who described any European move in this direction as "unwise" and potentially disastrous.
Background to the crisis: Trump's ambition and European rejection
The roots of this crisis lie in President Trump's insistence on annexing Greenland, a self-governing territory under Danish sovereignty. This is not the first time Trump has raised this idea; he previously sparked widespread controversy with this proposal during his first term, given the island's immense strategic importance. Located in the Arctic, it possesses vast natural resources and rare minerals, in addition to its vital military significance.
In response to the European Union's firm rejection of these efforts, Trump threatened to impose punitive tariffs of up to 25% on eight European countries, prompting French President Emmanuel Macron to call on the European Union to use the "anti-coercion tool" to respond to these pressures.
What is the European Anti-Coercion Instrument?
The Anti-Coercion Instrument is a modern legal mechanism developed by the European Union to enable it to respond swiftly and effectively to any economic pressure or geopolitical blackmail exerted by third countries against its members. This instrument allows the EU to impose countermeasures, such as tariffs or trade restrictions, without having to wait for lengthy arbitration proceedings at the World Trade Organization. The EU has never used this instrument before, making its invocation now a dangerous precedent in international relations.
US warnings in Davos
During the Davos Economic Forum, Jamieson Greer told reporters, “Every country will do what is in its national interest, and that has natural consequences.” He added, in a cautionary tone, “What I’ve observed is that when countries follow my advice, they do well, and when they don’t, crazy things happen.”.
These statements align with the position of US Treasury Secretary Scott Bisnett and Commerce Secretary Howard Lutenick, who urged Europe to "keep the pressure down." Lutenick indicated that any European retaliation that undermines the trade agreement reached last July, which capped US tariffs at 15%, would not be in the continent's best interest.
The future of transatlantic trade relations
This crisis puts US-European relations to the test, with observers believing that Washington's insistence on linking trade issues to matters of territorial sovereignty (such as the Greenland dispute) could usher in a new era of economic uncertainty. Should Washington carry out its threats and Brussels respond by activating its defense mechanisms, the world could witness a trade war that would negatively impact global supply chains and fragile economic growth.
Jarir concluded by emphasizing that the US market will not be permanently available and open to everyone without periodic review, noting that “uncertainty” will remain the dominant factor in future business transactions.
