Published by Global Banking & Finance Review®
Posted on January 18, 2026
2 min readLast updated: January 19, 2026
Add as preferred source on GoogleGerman industry criticizes Trump's Greenland tariff demands, urging EU unity against US pressure. Potential impacts on EU-US trade discussed.
By Rene Wagner and Rachel More
BERLIN, Jan 18 (Reuters) - German industry reacted with anger on Sunday to U.S. President Donald Trump's planned use of tariffs to crank up the pressure on Denmark to sell Greenland, calling on Europe not to cave in to his demands.
Trump has vowed to implement a wave of increasing tariffs on European allies until the U.S. is allowed to buy the strategically important island - expanding a trade war days before the EU's parliament is set to vote on tariff cuts.
"If the EU gives in here, it will only encourage the U.S. president to make the next ludicrous demand and threaten further tariffs," said Bertram Kawlath, president of the German engineering association VDMA.
"Highly controversial political goals are being tied to economic sanctions in an unacceptable manner," said Volker Treier, a foreign trade specialist at the German Chamber of Commerce and Industry (DIHK).
EXPORTERS LOOK TO EU FOR STRONG RESPONSE
Both called for a unified response from the European Union.
This could include the EU's 'Anti-Coercion Instrument', which allows the bloc to retaliate against third countries that put economic pressure on EU members to change their policies.
Saturday's threat could derail tentative deals Trump struck last year with the European Union and Britain, which is also a target of the planned Greenland tariffs.
The VDMA and DIHK cast doubt on the likelihood that EU lawmakers would vote on the deal with Washington this month, principally involving the removal of many EU duties on U.S. goods imported into the bloc.
"The European Parliament cannot possibly decide on tariff cuts for the U.S. next week as long as Washington is putting pressure on the European Union with new punitive tariffs," Kawlath said.
However, the head of the IfW economic research institute said the economic effects of the Greenland tariffs would be manageable for Germany.
"Only about 10% of our foreign trade is with the U.S. It is important that the EU does not allow itself to be blackmailed, but stands together and stands up to him," IfW President Moritz Schularik told Reuters.
(Editing by Louise Heavens)
The Anti-Coercion Instrument is a proposed EU mechanism that allows the bloc to retaliate against third countries that exert economic pressure on EU member states.
A trade war occurs when countries impose tariffs or other trade barriers against each other in response to trade policies. This can lead to increased prices and reduced trade volumes.
Economic sanctions are restrictive measures imposed by countries to influence or punish other nations. They can include tariffs, trade barriers, and financial restrictions.
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