US trade envoy cautions EU against deploying its anti-coercion instrument in response to Trump’s Greenland threats, warning it would be unwise.
DAVOS: The US trade envoy has warned European nations against deploying their tariff “bazooka” in response to President Donald Trump’s threats over Greenland.
US Trade Representative Jamieson Greer said using the EU’s anti-coercion instrument (ACI) “would not be wise”. He made the comments to journalists at the World Economic Forum summit.
The warning follows French President Emmanuel Macron urging use of the ACI after Trump threatened 25% tariffs on eight European countries. The EU has never before deployed the instrument, which is designed to counter geopolitical pressure.
Greer stated that every country will act in its national interest, with natural consequences. He echoed earlier caution from US Treasury Secretary Scott Bessent.
When asked about a potential EU stance that Greenland is “non-negotiable,” Greer responded, “If that’s the case, then so be it.” He added that countries following his advice “tend to do OK.”
Separately, US Commerce Secretary Howard Lutnick advised European countries to “keep the pressure and temperature low” regarding retaliatory tariffs. He warned that any EU tariff changes to last July’s trade deal would not benefit Europe.
That deal set a US tariff ceiling of 15% on most EU goods. Britain secured a separate agreement limiting tariffs on most goods to 10%.
Greer broadly stated that trading partners should not assume permanent, unconditional access to the US market under Trump. He argued for periodic reviews of trade openness to align with current policy goals.
“This means there’s always going to be a little bit of uncertainty,” he concluded.
