Tánaiste to discuss tariff threat in Brussels as Trump insists Greenland deal will be done
Ottoline Spearman
The Tánaiste will discuss the threat of new tariffs by the US at a meeting of EU Finance Ministers on Monday, as Trump has insisted that a deal will be reached over Greenland.
US President Donald Trump threatened to hit eight European countries with 10 per cent tariffs from February 1st, rising to 25 per cent in June, because they oppose his plan to buy the Arctic nation, causing consternation and anger in European capitals.
The move marked a significant escalation in a diplomatic row that risks becoming a transatlantic trade war.
A senior European Commission source confirmed to The Irish Times that a package of counter tariffs – drawn up by the EU last year and which would hit €93 billion worth of US trade – is now on the table as a possible response.
European Council president António Costa, who chairs the EU summits, said the union was ready to defend itself against “any form of coercion”.
The French government, meanwhile, is understood by The Irish Times to have pressed the EU to use its powerful anti-coercion instrument to target US multinationals. They view this as a possible form of leverage to encourage Mr Trump to back down on his plans to take control of Greenland.
The demands by the Trump administration to take control of Greenland for national security reasons threaten to cause the biggest rift in the transatlantic alliance since it was formed after the Second World War.
In Dublin, there is strong concern that the dispute over Greenland could lead to an unravelling of a trade deal reached between the EU and the Trump administration last summer. The Government fears such a development could have serious implications for the Irish economy, according to The Irish Times.
The trade agreement provided for a 15 per cent tariff rate ceiling on European exports to the US, including pharmaceuticals and semiconductors. However, the accord has not yet been ratified by the European Parliament, and there are fears it could collapse entirely in the backlash against Mr Trump’s announcement of new tariffs over Greenland.
On Monday, Trump said on social media that Denmark has been unable to do anything about the Russian threat to the territory, and now it is time for a deal.
"NATO has been telling Denmark, for 20 years, that “you have to get the Russian threat away from Greenland,” a Truth Social post said. "Unfortunately, Denmark has been unable to do anything about it. Now it is time, and it will be done!!!"
Speaking on Newstalk on Monday, Ireland South MEP Sean Kelly said efforts will be made to ease tensions, but EU Ministers will still make a stand: “They're hoping to de-escalate the situation by having diplomatic moves behind the scenes to try and stop it.
“There is also, of course, clearly sending a message to Donald Trump that they cannot back down in this situation.
Simon Harris has said that the tariffs would be damaging to the EU economy, supply chains and open trade.
An economist has also warned that Ireland would experience the "mother of all recessions" if successful.
Speaking to the Sunday Independent, Dr Alan Ahearne said that the outcome would be worse than anything experienced in the last economic downturn.
"Stock markets would fall, credit markets would tighten up, just like in 2008. Borrowing and lending would freeze," he said.
On Sunday, an emergency meeting of EU ambassadors was called, with Ireland reiterating its solidarity with Denmark and the people of Greenland. European Council President Antonio Costa also said late on Sunday he had decided to convene an extraordinary summit of European Union leaders in the coming days to discuss the bloc's response.
Also on Sunday, the Taoiseach told RTÉ that “the situation in Greenland is very clear from [Ireland’s] perspective, the territorial integrity, the sovereignty of Greenland and the Kingdom of Denmark cannot be violated.”
Earlier, Minister for Foreign Affairs Helen McEntee said: “Ireland has been crystal clear that the future of Greenland is a matter to be determined by Denmark and by the Greenlandic people, in line with well-established democratic principles and international law.
“This is a position that will not change. Respect for the sovereignty and territorial integrity of States is non-negotiable."
