European countries are considering hitting the United States with tariffs worth up to 93 billion euros, or about $108 billion, or even limiting American companies’ access to the European market, according to The Financial Times. This comes after US President Donald Trump threatened NATO allies who oppose his push to take control of Greenland.

Earlier,  Trump announced that eight countries which backed Greenland would face new tariffs unless a deal was struck to sell the territory to the United States.

Europe weighs strong response to Trump tariff threat

The Financial Times said these possible retaliation plans are being prepared to give European leaders more leverage when they meet Trump at the World Economic Forum in Davos later this week.  Officials involved in the preparations told FT that the goal is to be ready with strong options during the high-stakes meetings in Switzerland.

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European Union leaders are also planning an emergency meeting in the coming days to discuss Trump’s latest tariff threat and how the bloc should respond. An EU official said leaders are expected to meet in person near the end of the week.

Citing people familiar with the discussions, The FT reported that EU member states are talking about several response options. One of them is imposing retaliatory tariffs on 93 billion euros’ worth of US goods.

EU ambassadors met on Sunday evening in Brussels as they discussed responding to Trump’s announcement that he would impose 10% tariffs on eight European countries starting February 1. The tariffs are linked to those countries’ actions related to Greenland.

Another option being discussed is the use of the EU’s anti-coercion instrument, a strong trade tool designed to respond to economic pressure, also called as a “trade bazooka.”

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The trade bazooka could limit American companies’ access to EU markets or place controls on certain exports, among several possible countersteps. The tool was originally designed to deal with pressure from countries like China, not long-time allies such as the United States.

EU says tariffs break trade rules

After the meeting, European Council President Antonio Costa shared a message on social media. He said EU member states agreed to stay united in their support for Greenland and Denmark. He also said Trump’s new tariffs would be “incompatible with the EU-US trade agreement.”

Earlier, Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom released a joint statement addressing the situation.

“As members of NATO, we are committed to strengthening Arctic security as a shared transatlantic interest,” the statement said. “The pre-coordinated Danish exercise ‘Arctic Endurance’ conducted with Allies, responds to this necessity. It poses no threat to anyone.”

The countries said they stand firmly with Denmark and Greenland. “We stand in full solidarity with the Kingdom of Denmark and the people of Greenland,” the statement said. “Building on the process begun last week, we stand ready to engage in a dialogue based on the principles of sovereignty and territorial integrity that we stand firmly behind.”