🔶Donald Trump threatens to impose a 10% tariff on European goods if the EU does not support the US in purchasing Greenland.

The list of affected countries includes: Denmark, Norway, Sweden, the UK, France, Germany, the Netherlands, Finland.
If the opposition continues, the tariff could be raised to 25%.
-> The estimated impact of this tariff level is equivalent to 1-1.5% of the EU's GDP. Large enough to exert economic pressure.

EU response:
- The EU is considering activating the Anti-Coercion Instrument (ACI) and a retaliatory tariff package of ~$93B.
- Only France supports a firm stance; Germany, Italy, Czechia, and Hungary call for dialogue, rejecting escalation. (France is upset after Trump leaked Macron's private messages)
-> The scenario of the EU collectively confronting, selling off US stocks and T-Bonds (mostly stocks, with a total scale of ~$10T) is mentioned, but difficult to implement and carries risks of backfire.

It's another familiar Trump tactic, starting with a strong threat to pressure parties into negotiations, then easing tensions and reaching an agreement.