EU warns of downward spiral after Trump threatens tariffs over Greenland

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January 17, 2026 4:58 PM EST

FILE PHOTO: European Union flags flutter outside the European Commission headquarters, on the day of a European Union leaders' summit in Brussels, Belgium, December 18, 2025. REUTERS/Stephanie Lecocq/File Photo

BRUSSELS, Jan 17 (Reuters) - ⁠European Union ⁠leaders ‍on Saturday warned of a "dangerous downward spiral" over U.S. President Donald Trump's ‍vow to implement increasing tariffs on ​European allies until the U.S. is allowed to buy ​Greenland.

"Tariffs would undermine transatlantic relations and risk a dangerous downward spiral. Europe will remain united, coordinated, and committed ​to upholding its sovereignty," European Commission President Ursula von der Leyen and EU Council ​President Antonio Costa said in posts on X.

The bloc's top ‌diplomat Kaja Kallas said tariffs would hurt prosperity on both sides of the ​Atlantic, while distracting the ⁠EU from its "core task" of ending Russia's war in Ukraine.

"China and Russia ‌must be having a field day. They are the ones who benefit from divisions among allies," ‌Kallas said on X.

"Tariffs risk making Europe and the ‌United States poorer and undermine our shared prosperity. If Greenland’s security is at risk, we can address ‍this inside NATO."

Ambassadors from the European Union's 27 countries will convene ⁠on Sunday for an emergency meeting to discuss their response to the tariff threat.

(Reporting by Bart Meijer and Phil Blenkinsop, Editing by Mark Potter and Chris Reese)


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