Following U.S. President Donald Trump’s tariff threats amid the dispute over Greenland, the German government is working to ease tensions. Chancellor Friedrich Merz (CDU) announced on Monday that he plans to speak with Trump on Wednesday at the World Economic Forum in Davos. However, he did not rule out possible countermeasures by the EU. Vice Chancellor and Finance Minister Lars Klingbeil (SPD) stated: “We will not be blackmailed.”
“At the European level, there is strong agreement that additional tariff threats do not strengthen transatlantic relations but weaken them,” Merz said at a CDU event. “They also carry the risk of escalation.” He said he wanted to avoid that, but if necessary the EU would respond and take countermeasures.
On Saturday, Trump again demanded that the United States, for reasons of national security, must take control of Greenland, which belongs to NATO partner Denmark. He announced new tariffs on eight European countries, including Germany, for refusing to meet his demands. From February 1, an additional 10 percent tariff would apply, rising to 25% in June. There would be a “unified and clear response from Europe” if Trump maintained his threats, Klingbeil said. Countermeasures were already being prepared. “The line has been crossed.”
Klingbeil named three potential responses: the tariff agreement negotiated by the EU and the United States is now “on hold,” he said. The European tariffs on U.S. imports, which were suspended until February 6, could also be activated. Third, he pointed to European instruments against “economic coercion.” With this so-called trade “bazooka,” the EU could impose further import or export restrictions and bar U.S. companies from public procurement.
Merz warned Trump about the impact U.S. tariffs on Europeans would have on Americans themselves: while such tariffs would of course hit Europeans, he said, “tariffs are usually paid by those in the country where the imports arrive. In this case, American consumers would pay the tariffs.”
Trump is scheduled to speak Wednesday afternoon at the World Economic Forum in Davos. Merz said that during a sought-after meeting with the U.S. president, he intends to emphasize that the U.S. government must not undermine principles of territorial integrity and sovereignty. “Because that would have further consequences for cooperation within NATO.”
However, Merz’s spokesperson, Stefan Kornelius, pushed back against fears of a possible dissolution of NATO due to the Greenland dispute. He said he did not see the alliance with the United States “in any way endangered.” There was “no member state that questions NATO.”
The Greens in the Bundestag criticized the government’s response to Trump’s statements on Greenland as too cautious. Parliamentary group co-chair Britta Haßelmann called for “a clear and unequivocal joint response from Europe.” Beyond counter-tariffs, she mentioned a digital levy or tighter regulations on U.S. tech companies as potential EU measures.
CSU parliamentary leader Alexander Hoffmann accused the Greens of wanting to “push Europe directly into the next tariff dispute,” putting tens of thousands of automotive jobs at risk. The approach taken by the chancellor and the foreign minister toward the United States was “exactly right,” Hoffmann said: “Clearly on Denmark’s side and at the same time seeking dialogue.”
But demands for stronger action also came from within the SPD. “Measures to regulate American tech companies could have a quick impact,” SPD economic policymaker Sebastian Roloff told Handelsblatt. He added that Germany should also consider withdrawing from this year’s FIFA World Cup, hosted by the United States, Canada, and Mexico.
“The federal government must put German interests first in the Greenland dispute,” AfD leader Alice Weidel said on X. “The goal now must be talks to prevent a trade war and find a solution.”
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