(VOVWORLD) - The relationship between the European Union and the United States is developing serious fractures on multiple issues. Reciprocal tariffs announced by the Trump administration on Wednesday have further widened the divide between these long-standing allies.
Responding to the Trump administration’s hardline stance, the European leaders are reassessing and repositioning the bloc’s strength in this confrontation.
Tariffs and the military
Trump said on the Truth Social platform in March that the EU is “one of the most hostile and abusive tariffing authorities in the world,” which was formed for the sole purpose of taking advantage of the United States.
His statement is the latest reminder that Trump’s trade wars against Canada, China, and Mexico are now expanding to Europe. A 25% tariff on imported steel and aluminum from the EU already took effect on March 12.
The Trump administration is also challenging European territorial sovereignty by threatening to annex Greenland, a territory of Denmark. Trump is the first US president to openly express – in multiple official statements – an intent to bring Greenland under American control. He has said the US will eventually acquire Greenland “by one means or another”, not ruling out using military force.
The US’s NATO allies were stunned when Trump publicly declared his ambition to annex Greenland. While the US has always pledged to safeguard its NATO allies, including Denmark and Greenland, it’s now openly threatening the security, sovereignty, and territorial integrity of both Denmark and Greenland.
The US is also increasing pressure on its European allies to push for a peace agreement between Russia and Ukraine while simultaneously scaling back a significant portion of its security commitments in Europe.
By targeting Europe’s economic, technological, political, and security vulnerabilities, the US administration is deploying both military and trade policies as strategic tools to assert American dominance.
Europe swiftly repositions its strength
The EU is facing critical questions regarding how to rebalance the relationship, how to maintain its alliance with the US, and whether or not to retaliate. The first question is whether Europe should retaliate, and if so, how it should respond if Trump follows through on his threats. Canada and Mexico have implemented measures to counter the tariffs while also offering concessions and incentives, but they’re facing significant new trade barriers.
Given these realities, Europe must reassess its strengths and adopt new strategies. For example, the Anti-Coercion Instrument (ACI), which took effect in December 2023, empowers the European Commission to implement countermeasures when the WTO’s dispute resolution mechanisms fail. The EU can leverage agricultural and environmental standards to impose restrictions on American products.
Specific examples include the Farm to Fork Strategy, which enforces stricter food quality regulations, the Emissions Trading System (ETS), chemical registration and restriction regulations, the Ecodesign for Sustainable Products Regulation, and market access limitations for non-European competitors failing to meet sustainability criteria.
The EU has other cards to play, such as services, intellectual property, digital regulations, and technology. For instance, a new Digital Law enables the EU to tighten controls on American software and online platforms. The EU’s General Data Protection Regulation imposes strict privacy and security rules on data processing and transfers.
The EU can also bolster support measures, such as subsidies and low-interest loans, to protect strategic industries vulnerable to external influences, develop alternative supply chains, and ensure supply chain stability. Analysts say Europe’s strength in this new era hinges on the unity of its members to create collective power.